Technology concern IBM (IBM) has issued first-quarter earnings that showed its net income rose 26% from a year earlier to $927 million U.S.
IBM’s Q1 earnings per share (EPS) came in at $1.36 U.S. versus $1.26 U.S. that was expected on Wall Street, according to Refinitiv data.
Revenue in the quarter amounted to $14.25 billion U.S., which was lower than the $14.35 billion U.S. that analysts had expected.
Profit rose faster than revenue as IBM’s total expenses declined 4% to $6.45 billion U.S. during Q1, with reductions coming in research, development, and engineering.
Revenue in the company’s software segment rose about 3% during Q1 to $5.92 billion U.S., which was higher than the $5.83 billion U.S. consensus among analysts.
IBM’s consulting unit delivered $4.96 billion U.S. in revenue, up 3% compared to a year earlier.
In terms of guidance, IBM called for full-year revenue growth of 3% to 5%. The company maintained guidance for $10.5 billion U.S. in 2023 free cash flow.
IBM’s stock is down 9% over the last 12 months and trading at $126.32 U.S. per share.
