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Big Blue getting bigger again

by on20 April 2022

Top end of revenue forecast

IBM expects to hit the top end of its revenue growth forecast for 2022, the company said as it flagged a $300 million knock to revenue from the suspension of its business in Russia.

IBM makes a killing in Russia, but after that nasty business in WW2 where a “rogue IBM division” provided tech support and machines for the death camps, Big Blue has been a bit iffy about dealing with dictators with territorial and genocidal ambitions.

Big Blue said that Russia equates to less than "half a percent" of total revenue last year, Chief Financial Officer James Kavanaugh said, but added IBM expects a $200 million hit to 2022 profit.

Total revenue rose eight per cent  to $14.20 billion in the first quarter, beating estimates of $13.85 billion according to Refinitiv data. Adjusted profit of $1.40 per share also topped expectations of $1.38.

IBM has bet on high-growth software and consulting businesses with a focus on the so-called "hybrid cloud".Cloud revenue jumped 14 per cent  to $5 billion during the reported quarter.

The century-old company said it expects to hit the higher end of its mid-single-digit revenue growth forecast for this year, with the growth expected to come from the consulting business.

Analysts on average expect annual revenue of $60.69 billion, implying a year-on-year rise of 5.8 per cent.


Last modified on 20 April 2022
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