LONDON (ShareCast) - (Sharecast News) - Strong demand for cloud services has helped IBM post first-quarter revenues that came in above Wall Street expectations.
The 109-year-old technology firm reported a 1% rise in revenues for the three months to 31 March, to $17.73bn, beating analysts' forecasts for around $17.35bn. It was the fastest quarterly revenue growth in eleven quarters.

All of IBM's core units reported improved sales, but total revenues from cloud computer services jumped 21% to $6.5bn.

Net income fell to $955m or $1.06 per share, from $1.18bn or $1.31 per share a year earlier. Once excluded items were stripped out, earnings per share came in at $1.77, ahead of expectations for $1.63.

Arvind Krishna, who took over as chief executive a year ago, said: "Strong performance this quarter in cloud, driven by increasing client adoption of our hybrid cloud platform, and growth in software and consulting, enabled us to get off to a solid start for the year.

"While we have more work to, we are confident we can achieve full-year revenue growth and meet our adjusted free cash flow target in 2021."

James Kavanaugh, chief financial officer, added: "With strong cash generation and disciplined financial management, we increased investments in our hybrid cloud and AI capabilities, while significantly deleveraging in the quarter."

As at 1115 GMT, IBM was up 3% in pre-market trading.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE