IBM said it expects to exceed full-year revenue growth targets as robust demand for the company’s digital services helps cushion the blow from a strong dollar.
IBM said its cloud revenue rose 11 percent to $5.2 billion in the third quarter. IBM now expects the company’s annual sales to increase more than its previous estimate of mid-single-digit growth at constant currency.
Enterprise IT spending is robust in the Americas, but IBM is seeing some softness in key areas such as new bookings and backlog churn in Western Europe due to the macroeconomic environment there, Finance Chief James Kavanaugh told Reuters.
IBM, which gets more than half its revenue from outside the United States, increased its estimate for foreign exchange impact to 7 percent from 6 percent.
IBM CEO Arvind Krishna said: “Globally, clients view technology as an opportunity to enhance their business, which is evident in the results across our portfolio.”
IBM reported that its Q3 revenue rose 6 percent to $14.1 billion thanks to increase of 7 percent in Software revenue, 5 percent in Consulting revenue, 15 percent in Infrastructure revenue and 11 percent in Cloud revenue.
IBM generated revenue of $5.8 billion (+7.5 percent) from Software, $4.7 billion (+15.6 percent) from
Consulting, $3.4 billion (+14.8 percent) from Infrastructure in Q3 2022.
IBM said Hybrid cloud revenue, over the last 12 months, was $22.2 billion, up 15 percent.
