Second-quarter revenues beat forecasts at IBM
By Abigail Townsend
Date: Thursday 21 Oct 2021
(Sharecast News) - Second-quarter revenues at IBM have come in ahead of expectations, after strong client demand for cloud services.
The technology giant reported revenues of $18.75bn in the three months to 30 June, up 3% on the same quarter a year previously, or flat once adjusted for divested businesses and currency movements. Analysts had been expecting revenues of around $18.29bn.
Within that, revenues in IBM's cloud and cognitive software division rose 6%, and by 12% in its global business services unit.
Total cloud sales in the quarter were $7.0bn, a 13% improvement.
Group net income dipped to $1.33bn from $1.36bn a year previously, while earnings per share were $1.47 against $1.52 in the second quarter of 2020.
Arvind Krishna, chief executive, said: "Client adoption of our hybrid cloud platform contributed to the strong performance in global business services and software, and drove improved overall revenue growth.
"We are pleased with our progress and we remain on track to deliver full-year revenue growth and meet out cash flow objective."
James Kavanaugh, chief financial officer, added: "We expanded operating margins and grew profit dollars in the quarter, providing a key contribution to our cash performance."
He also told Reuters that the re-opening of economics in North America and western Europe had contributed to a "nice rebound in travel and transportation, automotive, industrial and consumer sectors overall."
As at 1445 BST, shares in IBM had put on 3% on Wall Street.
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