IBM's Q1 Revenue Rose 7.7% On Strong Cloud Computing Demand| MENAFN.COM

Wednesday, 06 July 2022 06:59 GMT

IBM's Q1 Revenue Rose 7.7% On Strong Cloud Computing Demand


(MENAFN- Baystreet.ca) IBM's Q1 Revenue Rose 7.7% On Strong Cloud Computing Demand

International Business Machines Corp. (IBM) reported first-quarter sales that topped analysts'
estimates on strong demand for its cloud computer services.

IBM said its first-quarter revenue rose 7.7% to $14.2 billion U.S., compared with analysts'
average projection of $13.8 billion U.S. It was the biggest sales increase in a decade at the
company.

The latest financial results exclude much of IBM's legacy infrastructure services unit, which was
spun off last November into a new company called Kyndryl.

Chief Executive Officer Arvind Krishna is trying to spur revenue growth by steering IBM, which
traditionally relied on infrastructure and information-technology services, into the fast-growing
cloud-computing market.

IBM stock gained 1.5% in after hours trading after closing at $129.15 U.S. The stock has
declined 3.4% this year.

The company reported that its hybrid-cloud sales increased 14% to $5 billion U.S., led by an
18% increase for Red Hat in the period ended March 31.

Software unit revenue jumped 12% to $5.77 billion U.S. and consulting sales gained 13% to
$4.83 billion U.S. Results from both units beat analysts' average projections.

Sales in IBM's infrastructure unit declined 2.3% to $3.22 billion U.S. The company remains one
of the biggest makers of mainframe computers. Earlier in April, IBM introduced its new z16
mainframe model.

Profit came in at $1.40 U.S. a share in Q1, compared with the average estimate of $1.41 U.S. a
share. Gross margin was 52.9%, falling short of the average estimate of 54.4%.

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