BusinessIBM beats across the board, posts revenue growth after...

IBM beats across the board, posts revenue growth after four quarters of declines

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SVP and Director at IBM Research Arvind Krishna converse on stage throughout the 2016 Wired Business Conference on June 16, 2016 in New York City.

Brian Ach | Getty Images

IBM shares rose 4% in prolonged buying and selling on Monday after the enterprise expertise and companies maker reported first-quarter earnings that got here in higher than analysts had anticipated.

Here’s how the firm did:

  • Earnings: $1.77 per share, adjusted, vs. $1.63 per share as anticipated by analysts, in line with Refinitiv.
  • Revenue: $17.73 billion, vs. $17.35 billion as anticipated by analysts, in line with Refinitiv.

Revenue grew by 0.9% on an annualized foundation in the quarter, in contrast with a 6% lower in the prior quarter, in line with a statement. The firm reiterated earlier steering of revenue growth for the full yr.

IBM’s Global Technology Services phase, which handles managed companies, outsourcing and assist, contributed $6.37 billion in revenue. Its revenue was down 1% yr over yr and greater than the FactSet consensus estimate of $6.32 billion. IBM plans to spin off half of the phase as a standalone public firm known as Kyndryl by the finish of the yr.

IBM’s Cloud and Cognitive Software division, which incorporates Red Hat, got here up with $5.44 billion in revenue, which was up 4% and above the $5.30 billion FactSet consensus.

Global Business Services, the unit that features consulting, contributed $4.23 billion in revenue, which was up 2% and better than the $4.03 billion consensus.

Systems revenue of $1.43 billion, from gross sales of mainframe computer systems and different {hardware}, was up 4% and above the $1.29 billion consensus estimate.

In the quarter IBM announced that it was buying 7Summits, a Salesforce consulting agency, from private-equity-firm Sverica Capital Management, and that it was buying Taos, a consulting group that works on cloud migrations. IBM additionally said it had offered 250 patents to grocery-delivery firm Instacart.

Excluding the after-hours transfer, IBM shares are up round 6% since the begin of 2021, whereas the S&P 500 index has grown almost 11% over the identical interval.

This is breaking information. Please verify again for updates.

WATCH: Watch CNBC’s full interview with IBM CEO Arvind Krishna and Cleveland Clinic CEO Dr. Tomislav Mihaljevic



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