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
Error: Please check your email address.

Tags CloudIBM

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments