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.
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. To current exchange rates, the currency will provide 150 basic benefit points for the growth of 2025, below the company’s prognosis or 200 basic points in January.
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 hybrid cloud software category that includes Red Hat grew by 12%, compared to 16% in the fourth quarter.
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%.
The action fell 6% in the extended trade. IBM customers are prioritizing efficient expense and cash preservation, said company Chief of Finance, Jim Kavanaugh, to the Wall Street Journal. The United States government efficiency department had delayed or rejected 15 federal contracts, Kavanaugh told Bloomberg.
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
