IBM Hit by Rare Sales Decline in Software Units, Posts Disappointing Quarterly Revenue
IBM is preparing to split itself into two public companies. By Reuters | Updated: 23 January 2021 10:45 IST
IBM is preparing to split itself into two public companies
Highlights
Revenue from IBM s cloud-computing business rose 10 percent
Sales from IBM cloud and cognitive declined 4.5 percent
IBM missed Wall Street estimates for quarterly revenue on Thursday, hurt by a rare sales decline in its software unit as clients shied away from longer-term deals due to pandemic-induced economic uncertainty.
The 109-year-old firm is preparing to split itself into two public companies and the namesake firm will focus on the so-called hybrid cloud, where companies use a combination of their own datacenters and leased resources to manage and process data.
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(Reuters) - IBM Corp missed Wall Street estimates for quarterly revenue on Thursday, hurt by a rare sales decline in its software unit as clients shied away from longer-term deals due to pandemic-induced economic uncertainty.
The 109-year-old firm is preparing to split itself into two public companies and the namesake firm will focus on the so-called hybrid cloud, where companies use a combination of their own datacenters and leased resources to manage and process data.
Revenue from its cloud-computing business rose 10% to a record $7.5 billion in the fourth quarter, with IBM saying it is confident of returning to sales growth in 2021 and expected revenue to grow in mid-single digits after the separation.
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International Business Machines Corp. reported quarterly revenue that missed analysts’ estimates, signaling Chief Executive Officer Arvind Krishna’s turnaround plan will take more time to pan out. Sales fell 6.5% to US$20.4 billion in the three months ended Dec. 31, the Armonk, New York-based company said Thursday in a statement. That was below the US$20.75 billion analysts had forecast, on average, and marked the 10th consecutive quarter with no year-over-year increase in revenue. The shares fell in extended trading.
IBM Shares Tumble After Another Quarterly Revenue Decline Meanwhile, total cloud revenue increased 10 percent to $7.5 billion, the most revenue from cloud yet for IBM.
Bloomberg | Jan 22, 2021
Brody Ford (Bloomberg) International Business Machines Corp. shares fell the most in 10 months after the company reported a greater sales decline in the fourth quarter than analysts had expected, signaling Chief Executive Officer Arvind Krishna’s turnaround plan may take more time.
Sales fell 6.5% to $20.4 billion in the three months ended Dec. 31, the Armonk, New York-based company said Thursday in a statement. That was below the $20.75 billion analysts had forecast, on average, and marked the 10th consecutive quarter with no year-over-year increase in revenue.