- IBM’s (NYSE: IBM) revenue rose by 0.3% YoY to US$17.6 billion in the quarter. The net cash from operating activities was US$2.7 billion.
- Its revenue from cloud & cognitive software was US$5.7 billion, up 2.5% YoY, and cloud and data platforms grew by 10% YoY.
- IBM chairman and CEO Arvind Krishna said IBM is on track to achieve its medium-term goal of mid-single digit revenue growth and “strong free cash flow generation.”
Technology company International Business Machines Corporation (NYSE: IBM) stock plunged more than 9% on Thursday, a day after lackluster third-quarter results.
The stock plunged 9.03% to US$129.08 at 2:16 pm ET.
IBM’s revenue rose marginally by 0.3% YoY to US$17.6 billion in the quarter. The net cash from operating activities was US$2.7 billion, while the free cash flow was US$0.6 billion in the quarter.
IBM chairman and CEO Arvind Krishna said the company is a step closer to its transformation as a hybrid cloud and AI company with the planned separation of Kyndryl next month.
Krishna said IBM is on track to achieve its medium-term goal of mid-single-digit revenue growth and “strong free cash flow generation.”
IBM’s revenue from cloud & cognitive software was US$5.7 billion, up 2.5% YoY. Cloud and data platforms grew by 10% YoY, while cognitive applications revenue remained flat.
In the global business services segment, revenue was US$4.4 billion, up 11.6% YoY, while the international process services revenue was up 19% YoY.
Global technology services revenue was down 4.8% to US$6.2 billion, infrastructure & cloud services revenue declined 5%, while technology support services revenue fell 4% YoY.
Systems revenue fell 11.9% to US$1.1 billion, and power systems down 24% YoY. However, its storage systems revenue grew 11%.
Global financing revenues were down 19.2% revenues to US$220 million.
Revenue for the nine months ended September 30 rose by 1.6% YoY to US$54.1 billion.
Likewise, net income for the nine months was US$3.4 billion, down 19% YoY. Diluted earnings per share declined to US$3.77 from US$4.72 per diluted share in the 2020 period.
The stock grew around 2% YTD. Its 52-week highest and lowest prices were US$152.84 and US$105.92, respectively. Its P/E ratio is 21.77, the forward P/E one year is 13.13, and the EPS is US$5.93. Its annualized dividend is US$6.56.
The New York-headquartered IBM has a market cap of around US$93.92 billion.
The technology sector has been growing rapidly over the past few years. The technology sector of the S&P index grew by 5.95% QTD. Investors, however, should carefully evaluate the companies before investing in the stock market.