View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Hardware
October 18, 2017updated 20 Jul 2022 1:10pm

IBM revenue in decline for 22nd quarter but beats expectations

IBM came close to climbing free from the deepening pit of declining revenue, achieving strong earnings and a subsequent share price rise.

By Tom Ball

The five and half year streak of failing revenue continues for IBM, as the tech giant racks up a 22nd consecutive quarter of decline in Q3 of 2017.

Despite the streak continuing, IBM almost clambered out of the deepening pit by achieving $19.15 billion in revenue, beating analyst predictions of $18.6 billion, according to Reuters.

Posting strong earnings per share, IBM experienced a three per cent share price rise, peaking at five per cent.

IBM’s strong results beat analyst expectations according to Thomson Reuters, gaining $3.30 in earnings per share, as opposed to a predicted $3.28.

This achievement lines the company up to end the calendar year strong with $13.80 in earning per share, again beating analyst predictions of $13.75 reported by Reuters.

Ginni Rometty, IBM chairman, president and chief executive officer, said: “In the third quarter we achieved double-digit growth in our strategic imperatives, extended our enterprise cloud leadership, and expanded our cognitive solutions business… There was enthusiastic adoption of IBM’s new Z Systems mainframe, which delivers breakthrough security capabilities to our clients.”

The Z mainframe was released targeting the current and critical problem of security, providing data encryption at every level of the network, according the company.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business
– Qualcomm triumphs in world’s FIRST mobile 5G test
– Big banks target SMEs with new blockchain platform
– Kubernetes reigns supreme as rival Docker jumps on board

Martin Schroeter, IBM senior vice president and chief financial officer, said: “During the first three quarters of the year, our strong free cash flow has enabled us to maintain our R&D investments and to expand IBM’s cloud and cognitive capabilities through capital investments… In addition, we have returned nearly $8 billion to shareholders through dividends and share repurchases.”

IBM has continued to be a driving force in developing and integrating somewhat nascent technologies poised to disrupt traditional processes. A central example of this is the company’s work with blockchain, now working to use the technology in conjunction with a cryptocurrency to enhance cross-border transactions.

Topics in this article : , ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.