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IBM revenue edges past estimates on cloud strength

Credit: REUTERS/LOREN ELLIOTT

International Business Machines Corp edged past Wall Street estimates for quarterly revenue on Monday, bolstered by strong demand for its cloud computing services from companies speeding up their digital shift due to the coronavirus pandemic.

Oct 19 (Reuters) - International Business Machines Corp IBM.N edged past Wall Street estimates for quarterly revenue on Monday, bolstered by strong demand for its cloud computing services from companies speeding up their digital shift due to the coronavirus pandemic.

The results come just weeks after Big Blue surprised investors with its announcement of splitting itself into two public companies, placing big bets on cloud computing to drive its future growth.

IBM's total revenue fell 2.6% to $17.56 billion in the reported quarter, but was slightly above analysts' estimates of $17.54 billion, according to IBES data from Refinitiv. Excluding the impact from currency and business divestitures, revenue declined 3.1%.

Revenue from the cloud business, previously headed by IBM's new boss Arvind Krishna, rose 19%to $6 billion in the third quarter.

Krishna took over as chief executive officer from Ginni Rometty in April.

The company's net income rose to $1.7 billion, or $1.89 per share, in the quarter ended Sept. 30 from $1.67 billion, or $1.87 per share, a year earlier.

Excluding items, the company earned $2.58 per share.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Anil D'Silva)

((munsif.vengattil@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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