IBM Gains After Sales Top Estimates Amid Currency Headwinds
- Annual revenue now expected to exceed mid-single digits
- New mainframe computer continues to boost infrastructure sales
The IBM office in Foster City, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
International Business Machines Corp. reported better-than-expected sales and affirmed its cash flow forecast in a sign that demand for software, mainframe computers and hybrid cloud services remain steady.
Sales rose 6.5% to $14.1 billion in the third quarter, the Armonk, New York-based company said Wednesday in a statement. Analysts, on average, estimated $13.5 billion, according to data compiled by Bloomberg. IBM expects full-year revenue growth will exceed the company’s previous mid-single digit guidance while free cash flow will hit the estimate of $10 billion.