From BigGo Finance · BigGo Finance · · 1m 10s
IBM Raises Software Growth Target After Delayed Deals Close
IBM lifts software growth forecast to 7-8% as deferred deals close, shares jump 4%.
In brief
IBM lifts software growth forecast to 7-8% as deferred deals close, shares jump 4%. IBM raised its full-year software revenue growth target to 7-8% after delayed contracts converted to sales, beating third-quarter revenue and earnings estimates. Originally reported by BigGo Finance.
IBM raises software growth target
IBM raised the upper end of its full-year software revenue growth forecast to about 7% to 8%, from 6% to 8%, after contracts delayed in the prior quarter started closing.
Third-quarter results beat estimates
Third-quarter revenue rose 4.7% to $17.10 billion, beating the $16.82 billion LSEG consensus, and adjusted earnings of $2.95 a share topped estimates of $2.86.
Software revenue climbs 8.3%
Software revenue climbed 8.3% to $7.80 billion, with hybrid cloud up 11% and transaction processing up 9%.
Consulting revenue flat
Consulting revenue was flat at $5.34 billion, slightly below the $5.37 billion consensus.
Adjusted gross margin narrows
Adjusted gross margin narrowed to 58.5%, short of the 59.1% analysts expected.
Shares rise 4% after hours
Shares rose about 4% after hours following the results.
What to remember
IBM raised its full-year software revenue growth target to 7-8% after delayed contracts converted to sales, beating third-quarter revenue and earnings estimates.
