The IBM CEO, Arvind Krishna, speaks at the SXSW conference in Austin, Texas, on March 11, 2025.
Andy Wenstand | SXSW conference and festivals | Getty images
IBM He reported better expected profits and income for Wednesday’s first quarter. The action fell 3% in the extended trade.
This is how the company worked:
- Profit per action: $ 1.60 adjusted compared to $ 1.40 expected
- Revenue: $ 14.54 billion compared to $ 14.4 billion expected
Income increased 0.6% in the quarter of $ 14.5 billion the previous year, according to a statement. The net income was reduced to $ 1.06 billion, or $ 1.12 per share, from $ 1.61 billion, or $ 1.72 per share, in the same quarter of the previous year.
By 2025, IBM reiterated its expectation of $ 13.5 billion in free cash flow and an income growth of 5% in constant currency. The Management requested $ 16.4 billion to $ 16.75 billion in revenues of the second quarter. Half of the range, $ 16.58 billion, is ahead of the LSEG consensus or $ 16.33 billion.
“We remain optimistic about long -term growth opportunities for global technology and economy,” said the IBM CEO, Arvind Krishna, in the statement. “While the macroconomic environment is fluid, according to what we know today, we maintain our expectations of the whole year for the growth of income and free cash flow.”
In the first quarter, software revenues increased 7% to $ 6.34 billion, in line with consensus among analysts surveyed by Street account.
The IBM consulting unit contributed $ 5.07 billion in revenue, which fell 2% and a little above the street has $ 5.05 billion.
The company’s infrastructure division, which includes Mainframe computers, recorded a 6% decrease in revenues to $ 2.89 billion, more than the consensus of $ 2.76 billion. Earlier this month, IBM presented its Mainframe Z17. The growth of infrastructure income generally increases as the client adopts the next generation and then moves at the end of the cycle.
Duration The first quarter, IBM said that he had resolved his demands with the chips manufacturer Globalfoundries. IBM also closed its acquisition of $ 6.4 billion of the software manufacturer in the Hashicorp cloud and announced plans to buy Datastax of Start of data storage software for unleashed terms.
IBM has been a higher performance this year, since the broader market has greatly sold to concerns about the tariffs of President Donald Trump and its potential impact on the economy. As of Wednesday, IBM shares increased by 11%, while Nasdaq fell almost 14%.
Executives will discuss the results with analysts at a telephone conference from 5 pm et.
These are last -minute news. Consult the updates again.
Look: The uncertainty is that the market is ‘in the short term’, says the IBM CEO, Krishna
