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IBM's results for the first quarter are known and this is not the rise that Big Blue was hoping for.
The company announced in a statement a turnover of $ 18.2 billion, down nearly 5% from the same quarter of last year. It's also a lot less than the $ 18.46 billion analysts expect, according to Refinitiv.
This is the third consecutive quarter of declining revenues from one year to the next.
Immediately following the announcement, IBM shares lost up to 4% on Tuesday afternoon.
Other highlights:
- IBM Global Technology Services generated revenue of $ 6.88 billion, down 7% year-over-year.
- The Cloud and Cognitive Software segment, which includes cognitive applications, data and cloud platforms, and transaction processing platforms, generated a revenue of $ 5.04 billion, down from 1.5 %.
- The Global Business Services business line had sales of $ 4.12 billion, essentially stable. Systems' revenue was $ 1.33 billion, down 11%.
Despite the shortfall, IBM CEO Ginni Rometty gave a positive image of the results.
"In the first quarter, our revenue growth in the cloud has accelerated and we have made further progress in key value-added areas in the cloud, cognitive software and consulting industries," she said in a statement. communicated. "IBM's investments in innovative technologies, coupled with our industry expertise and commitment to trust and security, position us to help customers move to chapter two of their digital reinvention.
Later this year, IBM is expected to complete a $ 34 billion contract for the acquisition of Red Hat. Many analysts believe this acquisition could be the boost IBM needs.
"IBM is gaining new customers, even from the cloud, before RHT," analysts at Nomura Instinet, led by Jeffrey Kvaal, wrote in a note distributed to customers on April 9, published by CNBC. "OpenShift [a Red Hat product] should enable IBM to capture new customers and new workloads as organizations begin deploying mission-critical applications, from onsite solutions to public or private clouds. "
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