International Business Machines Corp. (NYSE:IBM) reported a slight second-quarter revenue miss due to a sharp decline in infrastructure spending. But the company delivered earnings ahead of expectations and stuck to its full-year sales forecast.
Revenue for the three months to June 30, 2023, declined 0.4% to $15.48 billion, with revenue from software and consulting rising 7% and 4% respectively and infrastructure revenue declining 15%.
According to Refinitiv data, the consensus estimate of analysts covering the company was for total revenue of $15.58 billion.
Adjusted earnings per share of $2.18 were ahead of the $2.01 expected by analysts.
"In the quarter, revenue performance was led by our growth vectors of software and consulting, and we continued to expand our gross profit margin, driven by our improving portfolio mix and productivity initiatives," IBM senior vice president and chief financial officer d James Kavanaugh said in a statement.
"This year we have leveraged our strong cash position to invest for growth, announcing seven acquisitions to bolster our hybrid cloud and AI strategy, while continuing to return value to shareholders through dividends.”
The company said it continues to expect constant currency revenue growth of 3% to 5% for the full-year 2023. At current foreign exchange rates, it said currency is expected to be neutral to revenue growth.
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