IBM announced first-quarter 2023 adjusted earnings of $1.36 per share after Wednesday’s closing bell, surpassing the consensus estimate of $1.26 per share, according to Refinitiv, and sending the company's stock higher.
Its revenue for the period of $14.25 billion, though, was impacted by falling corporate spending on IT services and a strong dollar, missing Wall Street expectations of $14.35 billion.
IBM’s profit increased at a faster pace than its revenue as the company's total expenses and other income fell 4% to $6.45 billion, with reductions coming in research, development and engineering.
IBM’s gross margins for the software, consulting and infrastructure divisions all improved year over year.
The company added that it expects full-year 2023 revenue growth of 3% to 5% in constant currency while anticipating about $10.5 billion in free cash flow, up more than $1 billion year-over-year.
IBM shares gained nearly 4% in after-hours trading on Wednesday.
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