Aug 8 (Reuters) - DXC Technology ( DXC ) forecast

second-quarter revenue above Wall Street estimates on Thursday,

driven by steady demand for its cloud-based services from

businesses looking to incorporate AI features.

Shares of the Tysons, Virginia-based company rose 7% in

extended trading after DXC also raised its annual forecast for

revenue.

DXC now expects 2025 revenue in the range of $12.74 billion

to $13.02 billion from its prior projection of $12.67 billion to

$12.95 billion. Analysts on average expect revenue of $12.8

billion, as per LSEG data.

DXC projected second-quarter revenue in the range of $3.19

billion and $3.22 billion, compared with analysts' expectations

of $3.19 billion.

For the first quarter, DXC reported revenue of $3.24

billion, beating analysts' estimate of $3.14 billion.

The company's adjusted profit came in at 74 cents per share

in the quarter, compared with 63 cents a year ago.

Buyout firm Apollo Global and Kyndryl Holdings ( KD )

are in talks about a joint bid for DXC, Reuters had

exclusively reported in June. The companies have discussed an

offer of between $22 and $25 per DXC share.