IBM earnings beat estimates on cloud strength; shares up 6 per cent

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IBM’s total revenue fell 5.4 per cent to $18.12 billion in the quarter, but came in above analysts’ estimates of $17.72 billion

FILE PHOTO: A man wearing a protective mask walks past an office building with IBM logo amidst the easing of the coronavirus disease restrictions in the Central Business District of Sydney, Australia, June 3, 2020. REUTERS/Loren ElliottInternational Business Machines Corp posted second-quarter revenue and profit that beat analysts’ estimates on Monday, riding on the strength of its high-margin cloud computing business, sending its shares up 6%.

Revenue from the cloud business, previously headed by IBM’s new boss Arvind Krishna, rose 30% to $6.3 billion.Krishna took over as chief executive officer from Ginni Rometty in April, while appointing former Bank of America Corp’s top technology executive Howard Boville as the new head of IBM’s cloud business.

IBM’s global business services unit was impacted as clients cut or delayed spending on discretionary projects due to COVID-19, Kavanaugh said. Sales in the unit fell 7% to $3.9 billion. IBM’s total revenue fell 5.4% to $18.12 billion in the quarter, but came in above analysts’ estimates of $17.72 billion, according to IBES data from Refinitiv. Excluding the impact from currency and business divestitures, revenue declined 1.9%.

 

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