July 19, 2022
Strong demand at IBM’s consulting and infrastructure business helped the hardware giant post second-quarter revenue of US$15.54 billion, exceeding analyst estimates of US$15.18 billion.
IBM posted an adjusted gross profit margin of 54.5% for the quarter ended June 30, compared with an average of 56.6% expected by analysts.
IBM’s cloud revenue rose 18% to US$5.9 billion. Excluding special items, the company earned US$2.31 per share, exceeding estimates of US$2.27.
IBM is banking on high-growth software and consulting businesses with a focus on the so-called “hybrid cloud.” Despite the ongoing turbulence, the company expects continued revenue growth in regions such as Europe and Asia-Pacific.
Chief Financial Officer James Kavanaugh explained that a strong U.S. dollar and heightened political tensions had put pressure on the company’s near-term results.
Kavanaugh said, however, that the company is sticking to its full-year guidance of reaching the upper end of mid-single-digit revenue growth at constant currency.
Contrary to an earlier forecast of 3%-4%, IBM now expects a foreign exchange impact on sales of about 6% this year.
The sources for this piece include an article in Reuters.
