IBM reveals comprehensive numerical data
IBM, that famous tech behemoth, is currently struggling to boost revenue, with its focus on software. However, in the latest quarter, they fell short of Wall Street's expectations. Revenue climbed by a mere 1% to reach $15 billion, whereas analysts had anticipated a higher figure. As a result, the company reported a loss of $330 million, contrasting with the $1.7 billion profit recorded during the same period the previous year.
IBM's divisions display mixed results. The software division registered a nearly 10% growth, resulting in $6.5 billion revenue. Conversely, the infrastructure division reported a decline of 7% to reach $3 billion. The consulting division managed to maintain its previous $5.2 billion revenue. The CEO of IBM finance, James Kavanaugh, attributed this performance to the current economic downturn in his conversation with Reuters, with some clients scaling back investments to focus more on AI.
CEO Arvind Krishna anticipates comparable growth rates in the following quarter and remains hopeful of meeting the $12 billion objective for total annual free cash flow, which is a significant indicator of dividend distribution.
Following the missed quarterly target, IBM's stock price dropped by around 3% in the subsequent trading session. IBM has been relentlessly striding towards a shift in focus towards software and services for several years now.
The current economic downturn has affected some of IBM's divisions, with the CEO of IBM finance citing this as a reason for some clients scaling back investments and focusing more on AI.
The struggle of IBM to boost revenue and meet expectations is not unique to the tech industry, as the broader economy also faces challenges.
