DXC Technology predicts first-quarter revenue to be lower than expected

In recent news, DXC Technology, an IT management firm, has announced its forecast for first-quarter and full-year revenue. However, the company’s revenue projections fell below analysts’ estimates due to macroeconomic uncertainty.

One of the primary reasons for this cautious spending on IT services is the rise in borrowing costs. This has forced many companies to closely monitor and restrict their IT budgets. Additionally, DXC Technology generates a significant portion of its revenue from outside the United States, making it vulnerable to fluctuations in exchange rates.

During the first quarter, the global IT infrastructure system segment of DXC Technology saw a 9% decrease in revenue to $1.67 billion. This was mainly attributed to declines in revenue from cloud and IT outsourcing offerings. The company now expects first-quarter revenue to fall between $3.10 billion and $3.15 billion, which is lower than analysts’ average expectation of $3.22 billion.

Looking ahead, DXC also forecasted full-year revenue for 2025 to be in the range of $12.67 billion to $12.95 billion, below analysts’ average expectation of $13.19 billion. In the fourth quarter of the previous year, the company reported a 5.7% reduction in revenue to $3.39 billion, slightly exceeding analysts’ average estimate of $3.37 billion.

Juby Babu reported this data from Mexico City, and Alan Barona edited it before publication.

Overall, DXC Technology’s cautionary outlook on IT spending reflects broader economic concerns that have impacted businesses across industries worldwide

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