Menu
IBM returns to revenue growth after six-year decline

IBM returns to revenue growth after six-year decline

IBM's cloud business grew 30 per cent in the quarter to US$5.5 billion

IBM’s revenue rose for the first time in 23 quarters and beat analysts' estimates, as the company's shift into its focus areas such as cloud computing and security services gains traction.

IBM's shares fell 2.7 per cent in extended trading on Thursday. In October, the company had flagged a possible return to growth and since then its stock has rallied about 16 per cent, including about 10 per cent so far this year.

To counter a slowdown in its legacy hardware and software businesses, IBM has in recent years targeted high-margin "strategic imperatives" such as cloud computing, cyber security and data analytics that flow across its five business units.

That has helped the company's revenue decline slow down in recent quarters and finally turn a corner in the latest fourth quarter.

"Strategic imperatives" includes the contribution of cloud computing.

IBM's cloud business grew 30 per cent in the quarter to US$5.5 billion. Revenue from all "strategic imperatives" rose 17 per cent, accounting for nearly half of total revenue.

Armonk, New York-based IBM's total revenue increased 3.6 per cent to US$22.54 billion, beating analysts' average estimate of US$22.06 billion, according to Thomson Reuters I/B/E/S.

Excluding items, IBM earned US$5.18 per share, also beating analysts' average estimate of US$5.17 per share.

(Reporting by Pushkala Aripaka in Bengaluru; Editing by Maju Samuel and Savio D'Souza)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Events

EDGE 2024

Register your interest now for EDGE 2024!

Featured

Slideshows

How MSPs can capitalise on integrating AI into existing services

How MSPs can capitalise on integrating AI into existing services

​Given the pace of change, scale of digitalisation and evolution of generative AI, partners must get ahead of the trends to capture the best use of innovative AI solutions to develop new service opportunities. For MSPs, integrating AI capabilities into existing service portfolios can unlock enhancements in key areas including managed hosting, cloud computing and data centre management. This exclusive Reseller News roundtable in association with rhipe, a Crayon company and VMware, focused on how partners can integrate generative AI solutions into existing service offerings and unlocking new revenue streams.

How MSPs can capitalise on integrating AI into existing services
Access4 holds inaugural A/NZ Annual Conference

Access4 holds inaugural A/NZ Annual Conference

​Access4 held its inaugural Annual Conference in Port Douglass, Queensland, for Australia and New Zealand from 9-11 October, hosting partners from across the region with presentations on Access4 product updates, its 2023 Partner of the Year awards and more.

Access4 holds inaugural A/NZ Annual Conference
Show Comments