IBM shares fell 5.1% in the aftermarket following Q1 results that beat EPS and revenue estimates, but performance was mixed. Total cloud revenue was up 20% to $17.7bn.
While Europe as a whole returned to growth in Q1, the UK and Germany both fell back – although it reported “they had a marked improvement in their year-to-year growth trajectory”.
Segment performance: Cognitive Solutions (solutions and transaction processing software), $4.3bn (+2% in constant currency) ; Global Business Services (consulting, global process services, and application management), $4.2bn (-1%) ; Technology Services & Cloud Platform (infrastructure services, tech support services, integration hardware), $8.6bn (-1%) ; Systems (systems hardware and OS software), $1.5bn (+4%) ; Global Financing (financing and used equipment sales), $405m (-4%).
Strategic imperatives and cloud: Revenue was up 10% (constant currency) to $37.7bn in the last 12 months. Total cloud revenue was up 20% to $17.7bn. The annual exit run rate for as-a-service revenue increased 20% to $10.7bn.
