IT management firm DXC Technology has announced that its first-quarter and full-year revenue forecasts have fallen below estimates. The company anticipates cautious spending by clients due to macroeconomic uncertainty. This news has caused the company’s shares to drop by 18%.
One of the factors driving this cautious spending on IT services is rising borrowing costs, leading 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 susceptible to fluctuations in exchange rates.
In the first quarter, the performance of DXC Technology’s global IT infrastructure system segment 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 $3.24 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
