Arvind Krishna, CEO of International Business Machines Corporation (IBM), is attending a meeting with US President Joe Biden in the East Room of the White House in Washington, DC, on Wednesday. While wearing a protective mask. August 25, 2021. CEOs across the business world will join Biden to discuss how the industry and the federal government can work together to improve cybersecurity in the face of debilitating ransomware and cyberattacks.Photographer: Stephanie Reynolds / Bloomberg via Getty Images
Stephanie Reynolds | Bloomberg | Getty Images
IBM shares fell 5% in an extended deal on Wednesday after announcing third-quarter results, including lower earnings than analysts expected.
Here’s how the company works.
- Revenue: According to Refinitiv, it’s adjusted to $ 2.52 per share, compared to what analysts expected to be $ 2.50 per share.
- Revenue: According to Refinitiv, it’s $ 17.62 billion, compared to analysts’ forecast of $ 17.77 billion.
According to the statement, IBM’s revenue increased slightly year-on-year. Revenue increased 3% in the previous quarter. Net income fell 33% as the company’s gross margin shrank from 48% in the previous quarter to 46.4%.
IBM plans to spin out the managed infrastructure portion of Global Technology Services under the name Kyndryl in early November. Excluding the Kyndryl portion of the business, revenue increased 2.5%. This is close to IBM CEO Arvind Krishna’s goal of mid-single-digit revenue growth in the medium term.
The Global Services segment, which includes managed services, outsourcing and support, contributed $ 6.15 billion in revenue. This was down about 5% year-over-year, below the $ 6.25 billion consensus among analysts polled by Street Account.
Revenues from the Cloud & Cognitive Software business, including Red Hat, were $ 5.69 billion, up 2.5% and below Street Account’s consensus of $ 5.77 billion.
IBM’s global consulting revenue increased approximately 12% to $ 4.43 billion, surpassing the $ 4.29 billion Street Account consensus.
System revenue, including hardware, was $ 1.11 billion, down almost 12% to below the $ 1.23 billion consensus.
The company did not provide guidance.
Prior to the report, IBM’s share rose about 13% this year, following the 21% rise in the S & P 500.
During the period, IBM announced details of its artificial intelligence processor and plans to acquire hybrid cloud consulting firms BoxBoat Technologies and Bluetab Solutions Group.
Executives will discuss the results with analysts in a conference call starting at 5 pm Eastern Standard Time.
This is breaking news. Please check for updates.
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