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IBM’s cunning turnaround plan appears to be working

by on26 January 2022

Better results

Biggish Blue’s cunning plan to turn itself around appears to be getting some good results.

IBM notched its highest sales gain in 10-plus years in 2021s fourth quarter and revenue of $16.7 billion for its fourth quarter of 2021, up 6.5 per cent, or 8.6 per cent adjusted for currency, compared with the prior-year quarter's spinoff-adjusted results.

It was the tech giant's highest quarterly growth since 2011, and ahead of the Wall Street consensus forecast of $16.1 billion.

By segment, Software revenue rose by eight per cent, up 10 per cent. Consulting revenue was up 13 per cent. Infrastructure revenue was flat, with a two per cent rise.

IBM chairman and CEO Arvind Krishna the outfit increased revenue in the fourth quarter with hybrid cloud adoption driving growth in software and consulting.

"Our fourth-quarter results give us confidence in our ability to deliver our objectives of sustained mid-single-digit revenue growth and strong free cash flow in 2022."

Over the last year, IBM has restructured its business to focus on its software and consulting units, after spinning off its managed IT services business, now known as Kyndryl (KD). IBM recently agreed to sell its Watson Health unit to private equity shop Francisco Partners. While it is early in the turnaround, the cocaine nose jobs of Wall Street are happy.

Last modified on 26 January 2022
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