The company revealed an adjusted EPS of $1.77 on revenues of $17.73 billion. The market was looking for an EPS of $1.63 and revenues of $17.35 billion. The latter grew 0.9% on an annualized basis in the quarter. It is the first time in four quarters when IBM reported revenue growth.
The company’s Global Technology Services segment, responsible for services, outsourcing and support, accounted for most of the quarter’s overall revenue - $6.37 billion. By the end of 2021, IMB plans to spin off part of the segment as a standalone company called Kyndryl. Even though it contributed the least to the overall revenue, the Systems segment, in charge of deals with mainframe computers and other hardware, grew 4% to $1.43 billion compared to the previous figures.
Moreover, IBM announced that it purchased 7Summits, Taos, two consulting firms, and cloud migrations in the quarter. Also, it sold 250 patents to Instacart.
IBM closed the Wednesday session 3.90% higher. Since the beginning of the year, its stock price went up around 6%, while USA500 gained almost 11%.
Sources: cnbc.com, reuters.com, finance.yahoo.com