IBM has reported its financial results for Q3 ended 30 September 2021, revealing total revenue of $17.6bn, up 0.3 percent year-on-year but lower than analysts had expected.
IBM saw cloud and cognitive software revenue rise by 2.5 percent to $5.7bn in Q3, whilst revenue from its global business services increased 12 percent, to $4.4bn.
The company reported systems revenue of $1.1bn, representing a 12 percent year-on-year drop, which IBM attributes to declines in IBM Z and Power systems.
Arvind Krishna, IBM chairman and CEO, said: “With the separation of Kyndryl early next month, IBM takes the next step in our evolution as a platform-centric hybrid cloud and AI company. We continue to make progress in our software and consulting businesses, which represent our higher growth opportunities. With our increased focus and agility to better serve clients, we are confident in achieving our medium-term objectives of mid-single digit revenue growth and strong free cash flow generation.”
James Kavanaugh, IBM senior vice president and CFO, added: “We again had solid cash generation for the quarter and over the last year, while maintaining a strong balance sheet and the liquidity to support our hybrid cloud and AI strategy. Our post-separation portfolio mix is shifted toward our growth vectors, with a higher-value recurring revenue stream and strong cash generation, allowing us to continue to invest in the business and provide attractive shareholder returns.”