IBM shares surged up to 4% in extended trading on Monday after reporting a revenue of $17.73 billion in Q1 2021, according to the company’s press release. The revenue was more than expected $17.35 billion.
Revenue rose by 0.9% on an annualized basis in the quarter, compared from a 6% decrease in the prior quarter.
IBM earnings per share was $1.77, more than expected $1.63 per share
IBM’s Global Technology Services segment contributed $6.37 billion in revenue, down 1% year over year but more than estimated $6.32 billion.
IBM plans to spin off part of the Global Technology Services segment as a standalone public company known Kyndryl by the end of the year
Cloud and Cognitive Software division generated $5.44 billion in revenue, above estimated $5.30 billion
IBM reported $529 million in capital expenditures in the first quarter, down 28%
Global Business Services generated $4.23 billion in revenue, up 2% and above $4.03 billion estimate
Systems revenue came in at $1.43 billion, up 4% and above the $1.29 billion estimate.
IBM announced it was acquiring 7Summits, a Salesforce consulting firm, from private-equity firm Sverica Capital Management
IBM will also buy Taos, a consulting group that works on cloud migrations
IBM stock is currently gaining. IBM: NYSE is up 2.91% on premarket.
