IBM exceeds revenue estimates, though sales are about the same as a year earlier

IBM reported quarterly gross connected Wednesday that topped analysts' estimates, driven by higher-than-expected growth successful the company's bundle and infrastructure segments.

Here's however the institution did:

• Earnings: $3.60 per share, adjusted, vs. $3.60 per stock arsenic expected by analysts, according to Refinitiv.
• Revenue: $16.69 billion, vs. $16.4 cardinal arsenic expected by analysts, according to Refinitiv.

Analysts had expected IBM's full gross to diminution for the archetypal clip successful 2 years, but it ended up being flat, according to a statement. Net income roseate 16% to $2.71 billion.

IBM's bundle conception posted $7.29 billion, which works retired to astir 3% maturation and supra the $7.12 cardinal statement among analysts polled by StreetAccount.

The institution picked up $4.77 cardinal successful gross from consulting, up 0.5% and somewhat little than the $4.8 cardinal statement from StreetAccount.

IBM's infrastructure conception generated $4.48 billion, up astir 2% and much than the $4.18 cardinal StreetAccount consensus. Revenue from IBM's Z Systems enactment of mainframe computers jumped 16% aft the Z16 exemplary became mostly available past May.

With respect to guidance, IBM called for 2023 gross maturation successful changeless currency and astir $10.5 cardinal successful escaped currency flow. In 2021, IBM announced a extremity of delivering $35 cardinal successful escaped currency travel betwixt 2022 and 2024, and successful 2022 escaped currency travel totaled $9.29 billion.

During the quarter, IBM revealed a program to put $20 cardinal successful New York's Hudson Valley country implicit the people of a decade. The institution besides announced a next-generation quantum computer featuring 433-qubits and the acquisition of Octo, 1 of a handful of consulting companies IBM has absorbed since spinning retired its managed infrastructure services part arsenic Kyndryl successful 2021.

IBM outperformed its tech peers successful 2022, the worst twelvemonth for the Nasdaq since 2008. IBM roseate 11% past twelvemonth and was 1 of lone 2 U.S. tech companies valued astatine $50 cardinal oregon much to notch gains. The different was VMware, which agreed successful May to beryllium acquired by Broadcom for $61 billion.

Executives volition sermon the results with analysts connected a league telephone starting astatine 5 p.m. ET.

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