After weathering 22 quarters of declining revenue, IBM has achieved growth on the back of strengthening cloud and security prospects.
The tech industry behemoth surpassed analyst expectations when it raked in $22.5 billion, a solid figure in comparison to the predicted $22.06 billion.
IBM also achieved robust earnings of $5.18 per share, also narrowly beating the $5.17 expectations presented by analysts, as reported by Thomson Reuters. This figure excludes certain items.
Despite finally clawing its way out of revenue decline, the news did not spark the increase in interest some might expect, with stock falling by more than 4.5 per cent.
Showing confidence in the company’s financial achievement, Martin Schroeter IBM, senior vice president, global markets, said in a call with analysts: “Any way you look at this, this was a strong finish to the year.”
Cloud and security are not the only areas IBM are making waves in, with its sights also firmly fixed on the disruptive potential of blockchain technology. Putting a long standing plan into action, IBM and shipping company, Maersk, have entered into a global joint venture to streamline the outdated processes behind the shipping company.
In regard to technologies such as cloud, IBM is facing the formidable competition that is Amazon and Microsoft. The tech giant’s recent emergence from declining revenue stands testament to the fight it is putting up to shake off the shackles of its legacy business and prove itself a cutting edge contender.
Quantum computing is another area that IBM is pioneering, and it is set to make its technology available to the likes of Barclays and JPMorgan as part of a project to bring the emerging technology out from its nascent status and into practical use. Big Blue also faces competition in this space as Microsoft and Intel among others strive to make the 50 qubit breakthrough.