From SiliconANGLE · Mike Wheatley · · 1m
IBM beats earnings but struggles with mainframe slump
IBM's stock rose 4% after beating earnings forecasts but remains down 13% from pre-Q2 crash.
In brief
IBM's stock rose 4% after beating earnings forecasts but remains down 13% from pre-Q2 crash. IBM reported $2.95 per share earnings and $17.1 billion revenue, but its stock is still down 13% from July due to Q2 mainframe sales slump. Originally reported by SiliconANGLE.
IBM beats earnings
IBM reported adjusted earnings of $2.95 per share, beating Wall Street’s forecast of $2.86 per share.
Revenue growth
Revenue rose 5% to $17.1 billion, just ahead of the Street’s target of $16.82 billion.
Q2 mainframe slump
IBM’s stock plummeted more than 25% after Q2 mainframe sales fell short of expectations.
AI consulting growth
AI now accounts for 30% of consulting revenue and 35% of order backlog.
Quantum computing progress
IBM won U.S. government confidence in quantum benchmarking initiative for 2033 target.
Quantum Starling system
Quantum Starling will perform 20,000 times more calculations than current quantum computers.
Stock recovery
IBM’s stock remains down 13% from July 13 close despite Q3 improvements.
What to remember
IBM reported $2.95 per share earnings and $17.1 billion revenue, but its stock is still down 13% from July due to Q2 mainframe sales slump.
