IBM reports 6% revenue growth in fourth quarter after spinout of managed infrastructure business


SVP and Director at IBM Research Arvind Krishna speaks on stage in the course of the 2016 Wired Business Conference on June 16, 2016 in New York City.

Brian Ach | Wired | Getty Images

IBM stated on Monday that revenue climbed 6% in the fourth quarter.

Here’s how the corporate did:

  • Earnings: $3.35 per share, adjusted
  • Revenue: $16.70 billion

During the quarter, IBM spun out is managed infrastructure companies business into Kyndryl. For IBM’s persevering with operations, revenue rose 6% from a yr earlier, the corporate stated an announcement.

IBM executives have been telling buyers of late to search for mid-single digit revenue growth. In the prior quarter, IBM’s revenue from persevering with operations elevated by 2%.

Net earnings in the fourth quarter jumped 72% from a yr earlier to $2.33 billion elevated, whereas gross margin narrowed to 56.9% from 58.9%.

IBM streamlined its reporting segments for the fourth quarter in conjunction with the Kyndryl separation. Its software program business, previously referred to as Cloud and Cognitive Software, generated $7.27 billion in revenue, up 8% from a yr earlier.

Revenue in the consulting unit, beforehand named Global Business Services, rose 13% to $4.75 billion. The IBM infrastructure business, which incorporates {hardware}, was down 0.3% to $4.41 billion.

As of the shut, IBM inventory is down 4% for the reason that begin of the yr, whereas the S&P 500 is down 8%.

Executives will talk about the outcomes and expectations for the yr with analysts on a convention name beginning at 5 p.m. ET.

This is breaking information. Please examine again for updates.

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