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IBM Disappoints With Cash Flow Outlook Despite Highest Sales Growth in a Decade

  • Sales were $15.5B, reflecting highest growth in over a decade
  • Gross margins also slip on higher labor, component costs
IBM offices in New York.

IBM offices in New York.

Photographer: Scott Eells/Bloomberg

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International Business Machines Corp. shares fell the most in almost nine months on Tuesday after the tech company lowered its forecasts for free cash flow this year due to the impact of a strong dollar and the loss of business in Russia.

The revision overshadowed results that topped analysts’ estimates, signaling that demand for mainframe computers, consulting and cloud services remains strong amid concerns of a pullback in tech spending.