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- 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

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%.


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.