ibm’s quarterly revenue falls but tops forecasts
Monday 27 January 2025
Last Updated : GMT 06:49:16
Arab Today, arab today

IBM’s quarterly revenue falls, but tops forecasts

Arab Today, arab today

Arab Today, arab today IBM’s quarterly revenue falls, but tops forecasts

An IBM logo is displayed in Berlin, Vermont
New York - Arab Today

International Business Machines Corp. posted better-than-expected third-quarter revenue on Monday, helped by growth in the company’s cloud and analytics businesses.
Under CEO Ginni Rometty, the technology services company has shifted toward more profitable areas, such as cloud services, artificial intelligence, analytics, and security while trimming its traditional hardware and services businesses.
Revenue from those areas, which the company calls “strategic imperatives,” rose 16 percent to $8 billion in the third quarter. Cloud revenue jumped 44 percent compared with a 30 percent rise in the second quarter, it said.
However, shares of IBM, which reported its 18th straight quarter of declining revenue, were down 3.1 percent at $150.60 in after-market trading.
IBM has made a string of acquisitions focused on elements of its strategic imperatives business, including The Weather Company and Truven Health, spending $5.45 billion so far this year. In comparison, the company spent $821 million on acquisitions in the same period last year.
IBM’s operating gross margin fell 2.1 percentage points to 48 percent in the quarter, as a result of higher investments in the company’s cloud business and the shift to a subscription-based as-a-service model.
“We’re building cloud data centers which don’t come online at 90 percent utilization, you build utilization as you ramp,” said IBM Chief Financial Officer Martin Schroeter in an interview with Reuters.
Schroeter added that IBM would continue its pace of investments due to demand for the company’s as-a-service offerings.
“Gross margins declined 210 basis points and that was due to — probably — product mix and a higher level of overall investment for some new higher-margin products,” said David Holt, an analyst at CFRA Research.
The Armonk, New York-based company maintained its full-year adjusted earnings forecast of at least $13.50 per share.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ibm’s quarterly revenue falls but tops forecasts ibm’s quarterly revenue falls but tops forecasts

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ibm’s quarterly revenue falls but tops forecasts ibm’s quarterly revenue falls but tops forecasts

 



GMT 21:52 2017 Thursday ,19 October

Israeli forces arrest 7 Palestinians in West Bank

GMT 15:41 2017 Wednesday ,04 October

Putin warns against double standards in war on terror

GMT 23:42 2017 Monday ,18 September

Mattis 'shocked' by low level of US military readiness

GMT 17:36 2017 Saturday ,14 October

What's at stake for business in Iran's nuclear deal

GMT 14:14 2017 Saturday ,11 February

Ghada Adel praises participation with Adel Imam

GMT 21:00 2017 Thursday ,05 October

Scores of settlers storm into Al Aqsa

GMT 11:56 2017 Wednesday ,29 November

Iraqis throng to Picasso in Baghdad

GMT 05:43 2018 Wednesday ,12 September

"Ala" Syria determined to liberate Idleb from terrorism

GMT 19:47 2018 Thursday ,18 January

Sultan Al Qasimi launches Sharjah real estate projects

GMT 10:58 2017 Thursday ,20 April

Kabbara meets Saudi counterpart, IMO chief in Cairo

GMT 00:10 2017 Tuesday ,10 October

Turkey calls for new round of Syria talks in Geneva

GMT 00:29 2017 Tuesday ,24 October

HM King congratulates UN secretary-general

GMT 10:42 2017 Monday ,22 May

Egypt refers 48 IS suspects to military court
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday