IBM beat Wall Street’s quarterly revenue estimates, buoyed by rising demand for its cloud services, and is betting on its future as it prepares to separate one of its old units, however, IBM shares fell 3% after the company shied away from issuing forecasts for the current quarter, citing Uncertainty about the global economic recovery due to the COVID-19 pandemic.
According to the Indian TOI website, Chief Financial Officer James Kavanaugh said: “In the short term, clients priorities continue to include operational stability, flexibility and cash preservation, which tends to favor “operating expenses” over “capital expenditures,” adding, “This has led to some delays. In the project and postponing the purchase. “
Revenue from the cloud business, previously headed by CEO Arvind Krishna, rose 19% to $ 6 billion in the third quarter, offsetting weakness in many of its other businesses, and the boost from the cloud business underscores IBM’s move to focus on hybrid cloud solutions. Open high-margin and artificial intelligence, which together account for more than half of its recurring revenue, by separating the IT infrastructure services unit.
“Clients continue to balance short-term challenges and opportunities for transformation … More of my conversations with CEOs are about how they are digitalizing,” Krishna said in a post-earnings call, while IBM’s total revenue fell 2.6% to $ 17.56 billion in the quarter. The aforementioned, but was slightly higher than analysts’ estimates of $ 17.54 billion, according to IBES data from Refinitiv.
Excluding the impact of currency and business divestment, sales fell 3.1%, while the Global Technology Services sector, the largest unit in IBM that services some of the largest data centers in the world, recorded a 4% drop in revenue to $ 6.5 billion. Items, the company earned $ 2.58 a share, which is in line with analyst estimates.