IBM’s report was better than the expected shares +7%.
Technology company International Business Machines (IBM) has published a report for the first quarter of 2022. Sales and profit exceeded expectations, and this was the driver of IBM’s quotes by 7% to $138.32 at auction on April 20. In the last quarter ended March 31, IBM’s revenue grew by 8% year-on-year to $14.2 billion.
The promising segment of hybrid cloud solutions increased sales by 14% to $5 billion. Sales of software increased by 12%, and consulting services — by 13%. The reduction is only in the infrastructure segment (-2%), but it is expected. Net profit decreased to $733 million, compared to $995 million a year earlier. Earnings per share were $0.81.
Should note that approximately 5% of the revenue growth provided by the Kyndryl IT services business allocated to the spin-off. But even without it, IBM maintains moderate growth. A positive signal is the continued high demand for IBM cloud solutions–the company is transforming its business in this direction and focusing on promising trends in IT. Obviously, IBM shareholders are happy to see that these efforts are yielding results.
IBM’s hybrid cloud tools allow customers to integrate their own IT systems with public clouds. This is a combination of a secure private IT infrastructure together with the ability to quickly expand. IT capacity through the public cloud ecosystems of Microsoft, Amazon and Alphabet.
As a result, the hybrid cloud allows companies to reduce costs and ensure, for example, performance during seasonal peak loads. It is likely that the demand for hybrid clouds will continue to increase, and IBM expands its share in this market. In 2022, IBM expects revenue growth at a single-digit pace and free cash flow of $10.5 billion. Stable cash flow and a cash reserve of $10 billion allow the company to pay dividends for sizeable amounts. In the last quarter, it amounted to $1.5 billion.
