DXC Technology, an IT management firm, has forecasted lower revenue for the first quarter and full-year 2025 due to cautious spending by clients amidst macroeconomic uncertainty. This has caused its shares to drop by 18%. Rising borrowing costs have led many companies to limit their IT spending, impacting DXC’s performance.
The company generates significant revenue from outside the United States, making it vulnerable to fluctuations in exchange rates. Its global IT infrastructure system segment saw a 9% decline in revenue to $1.67 billion in the quarter, mainly due to decreases in cloud and IT outsourcing offerings. DXC’s customer base includes London-listed Lloyds Banking Group.
In the fourth quarter, DXC reported a 5.7% revenue decline to $3.39 billion, slightly above the analysts’ average estimate of $3.37 billion. Despite these challenges, DXC Technology is working to navigate the uncertain economic environment and adjust its business strategies accordingly.
For the first quarter, DXC expects revenue in the range of $3.10 billion to $3.15 billion, falling short of analysts’ average expectation of $3.30 billion. The company also forecasted full-year 2025 revenue between $12.67 billion to $12.95 billion, lower than the analysts’ average estimate of $13.19 billion.
