IBM Revenue Falls Almost 5 Percent in the First Quarter

IBM reported reported a decline in revenue from the cloud-computing, AI and cognitive software unit. It had a 2 percent drop, to $5.0 billion, according to Bloomberg.

Cloud revenue alone grew 10 percent over the last 12 months, but that was a slower pace than the previous quarter. Revenue across all of IBM’s business units either fell or was little changed.

Total revenue for the first quarter was $18.2 billion, down 4.7 percent from the same period a year earlier. Adjusted earnings per share were $2.25. The company’s consulting services, a combination of its Global Business Services and Global Technology Services units, pulled in a combined $11 billion, representing about 60 percent of IBM’s overall revenue.

Last quarter, IBM reported its first earnings since announcing the Red Hat deal and its shares surged the most in a decade, as the company gave a positive forecast for 2019 and fourth-quarter results beat analysts’ estimates. For the full fiscal year, IBM sees adjusted earnings per share of at least $13.90, it said in the statement.

This quarter IBM restructured its business and reported a new segment called cloud and cognitive software in preparation for the Red Hat acquisition closing. This segment includes cloud and data platforms, cognitive applications and its artificial intelligence unit, Watson.