Big Blue has reported its first-quarter earnings, topping analyst’s expectations despite the tough forex headwinds.
Revenue fell to $19.59bn, down 12% YoY, with non-GAAP earnings of $2.9bn – or $2.91 a share.
IBM will no doubt breathe a sigh of relief, clearing Wall Street’s expectations of $2.80 a share on revenue of $19.64bn.
The world’s largest tech services company, which gets more than half of all revenue from outside the US, said that it now expects the surging dollar to have a 7% negative impact over the full year.
Digging into the headline figures, Big Blue’s software business continued to bleed money like a haemophiliac with multiple gunshot wounds to the chest. The division brought in $5.3bn in revenue, a 7% decrease on the previous quarter and 8% drop year-on-year.
But with the IBM’s future resting firmly on its cloud and analytics businesses, the Armonk, New York-based company pulled it out where it really mattered. The cloud business pulled in $3.8bn in revenue, a 60% increase year-on-year, while the analytics division grew by 12%.
Investors are showing a surprising degree of patience with IBM as it slowly sheds off its legacy businesses in favour of high growth markets; but with the results marking the 12th straight quarter of declining revenue, many shareholders will surely be limbering up, getting ready to jump ship.