Abhoy Sarkar's Avatar
published in Blogs
Oct 20, 2022
IBM (IBM, $122.59) beats Q3 expectations

IBM (IBM, $122.59) beats Q3 expectations

IBM  posted stronger-than-expected third quarter earnings. Revenues, too, beat expectations.

The software company’s adjusted earnings came in at $1.81 per share for the three months ending in September, topping the Street forecasts by around 3 cents per share.

Revenues rose +6% from the year-ago quarter to $14.1 billion, exceeding the Street consensus forecast of $13.5 billion. Revenues from the software segment climbed +7.5% to $5.8 billion. While Consulting revenues grew +5.4% to $4.7 billion. Revenues from Red Hat (the cloud computing firm that IBM acquired for $34 billion in 2019) increased +12%.

Looking ahead, IBM anticipates a stronger U.S. dollar will erode around 7% of  the group's full year earnings. However, the company b still expects to beat its previous forecast of "mid-single-digit growth" on a constant currency basis.

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