(Reuters) - DXC Technology 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 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.

(Reporting by Juby Babu in Mexico City; Editing by Mohammed Safi Shamsi)