IBM announces mixed Q1 results, HashiCorp acquisition; shares down

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IBM announces mixed Q1 results, HashiCorp acquisition; shares down

IBM has reported earnings that topped analysts' expectations for the fiscal Q1 2024 and announced it has reached an agreement to acquire HashiCorp for $6.4 billion.The company posted earnings per share of $1.68, beating the consensus estimates of $1.58. However, the company's revenue for the quarter was slightly below expectations at $14.46 billion, missing the consensus projection of $14.51 billion.

Despite this, the company cautioned that currency fluctuations could negatively impact revenue growth by approximately 1.5 to 2 percentage points. Moreover, IBM also announced it has reached a definitive agreement to buy HashiCorp Inc., a leader in multi-cloud infrastructure automation, for $35 per share in cash. This acquisition, valued at an enterprise value of $6.4 billion net of cash, will be financed using IBM’s available cash on hand."Enterprise clients are wrestling with an unprecedented expansion in infrastructure and applications across public and private clouds, as well as on-prem environments.

 

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IBM Bolsters Hybrid-Cloud Business With $6.4B HashiCorp AcquisitionSteve McDowell is chief analyst at NAND Research. Steve is a technologist with over 25 years of deep industry experience in a variety of strategy, engineering, and strategic marketing roles, all with the unifying theme of delivering innovative technologies into the enterprise infrastructure market.
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