Enterprise technology and services maker IBM reported its first revenue growth in five quarters in the January to March period, according to CNBC.
- Revenues rose 0.9% to $17.73 billion in the first quarter from a 6% decrease in the previous quarter. Analysts expected $17.35 billion.
- The Global Technology Services segment contributed $6.37 billion in revenue. This was down 1% year-on-year, but still higher than the consensus estimate of $6.32 billion. A spin off standalone company called Kyndryl is planned for 2021.
- The Global Business Services unit surpassed expectations as it grew by 2% to $4.23 billion versus the $4.03 billion consensus. Systems revenue likewise rose 4% to $1.43 billion versus the $1.29 billion consensus.
- Adjusted earnings were recorded at $1.77 per share, also above analysts’ expectations of $1.63 per share.
- CEO Arvind Krishna believes the spend environment is improving overall, especially when compared with the fourth quarter of 2020.
- Finance Chief Jim Kavanaugh reported an improvement in project activity and client-based business volumes, including in retail and consumer products which were hit by the COVID-19 pandemic.