IBM announced financial results for the first quarter of 2020.
IBM’s first quarter revenue rose 1 percent to $17.7 billion.
IBM’s Cloud & Cognitive Software revenue rose 4 percent.
IBM’s Systems revenue increased 4 percent.
IBM’s Global Business Services revenue grew 2 percent.
IBM reported total cloud revenue of $6.5 billion, up 21 percent. IBM’s Cloud revenue was $26.3 billion over last 12 months, up 19 percent.
IBM’s revenue from Red Hat increased 17 percent.
IBM CFO James Kavanaugh said cloud spending by clients in retail, manufacturing and travel industries in the United States was picking up after the initial pandemic-driven slump.
Cloud & Cognitive Software (includes Cloud & Data Platforms, Cognitive Applications and Transaction Processing Platforms) —revenues of $5.4 billion, up 3.8 percent.
Cloud & Data Platforms grew 13 percent, led by the company’s hybrid cloud platform and Cloud Pak growth. Cognitive Applications grew 4 percent, led by growth in Security. Transaction Processing Platforms declined 12 percent. Cloud revenue up 38 percent. Gross profit margin up 60 basis points.
Global Business Services (includes Consulting, Application Management and Global Process Services) —revenues of $4.2 billion, up 2.4 percent, with growth in Consulting and Global Process Services. Application Management revenue declined. Cloud revenue up 33 percent. Gross profit margin up 100 basis points.
Global Technology Services (includes Infrastructure & Cloud Services and Technology Support Services) — revenues of $6.4 billion, down 1.5 percent. Infrastructure & Cloud Services and Technology Support Services declined. Cloud revenue up 6 percent. Gross profit margin up 60 basis points.
Systems (includes Systems Hardware and Operating Systems Software) — revenues of $1.4 billion, up 4.3 percent, led by IBM Z, while Power and Storage Systems declined. Operating Systems Software declined. Cloud revenue up 23 percent. Gross profit margin up 430 basis points.
Global Financing (includes financing and used equipment sales) — revenues of $240 million, down 20.0 percent, driven by lower financing volumes and sale of receivables.