IBM reports $17.62 bn revenue powered by 2.5% growth in Cloud

IBM said its total revenue rose 0.3 percent to $17.62 billion in the third quarter of 2021, as sales from Global Technology Services business (being named Kyndryl after the spinoff) fell 4.8 percent to $6.2 billion.
“We continue to make progress in our software and consulting businesses, which represent our higher growth opportunities,” Arvind Krishna, IBM chairman and chief executive officer, said in a statement.

IBM has reported revenues of $5.7 billion (+2.5 percent) from Cloud & Cognitive Software, $4.4 billion (+11.6 percent) from Global Business Services, $6.2 billion (–4.8 percent) from Global Technology Services, $1.1 billion (–11.9 percent) from Systems and $220 million (–19.2 percent) from Global Financing.

The slowdown in the legacy business has prompted IBM to shift focus to hybrid-cloud, an area where it sees a $1 trillion market opportunity, to boost growth and better compete with and Microsoft, Reuters reported.

The weakness at IBM’s high-growth areas is more problematic than the revenue miss, said Wedbush analyst Moshe Katri.