IBM predicts record revenue growth in 2022, driven by cloud operations and engagement.
The company expects to reach the higher end of its mid-single-digit revenue growth forecast in 2022. IBM anticipates annual FCF to reach $10 billion to $15 billion.
The forecast came after the company’s revenue rose in the first quarter despite the impact from Russia, which the company expects to have a $200 million impact on its 2022 profit.
For the first quarter of 2022, total revenue rose 8% to $14.20 billion, exceeding analysts’ estimates of $13.85 billion, and adjusted earnings were $1.40 per share, exceeding analysts’ expectations of $1.38. The first quarter also saw cloud revenue jump 14% to $5 billion.
The company recorded software revenues of 5.77 billion dollars, an increase of 12% over year and just above analysts’ prediction of 5.7 billion dollars. Infrastructure revenues amounted to 3.22 billion dollars, a decrease of 2.2% over the previous year and almost in line with the analysts’ consensus of $3.42 billion.
According to IBM Chief Financial Officer James Kavanaugh, customers pushing for the digitization of the business are fuelling strong demand for the consulting business, despite the crisis in Ukraine and the company’s decision to discontinue operations in Russia.
The sources for this piece include an article in Reuters.