IBM Posts Better-Than-Expected Sales, Affirms Cash Flow View

  • Software unit sales gain 7.8% in sign of renewed focus
  • Currency fluctuations affected consulting business, CFO says

IBM offices in Foster City, California.

Photographer: David Paul Morris/Bloomberg
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International Business Machines Corp. reported better-than-expected sales and affirmed its full-year outlook, suggesting the company’s focus on software and hybrid cloud services is paying off.

Third-quarter sales gained 4.6% to $14.8 billion, the Armonk, New York-based company said Wednesday in a statementBloomberg Terminal. Analysts, on average, estimated $14.7 billion. IBM also reiterated that annual sales will growth 3% to 5% and free cash flow will be about $10.5 billion.