IBM Reports Falling Revenue, Pulls Forecast on Virus Woes
- CEO Krishna says move to hybrid cloud aids clients in pandemic
- Sales from Red Hat drive 19% increase in total cloud revenue
Photographer: Ben Torres/Bloomberg
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International Business Machines Corp. reported a drop in first-quarter revenue and pulled its profit forecast for the year, signaling that the Covid-19 pandemic has become another hurdle for the company in its transition to cloud computing.
Sales declined 3.4% to $17.6 billion in the period that ended March 31, the Armonk, New York-based company said Monday in a statement. Analysts, who recently updated their projections to adjust for the pandemic, expected revenue of $17.7 billion, according to data compiled by Bloomberg.