April 24 - International Business Machines (IBM, Financial) shares fell about 7% on pre-market trading on Thursday, as investors overlooked stronger-than-expected guidance and focused instead on quarterly segment declines.
For the first quarter of fiscal 2025, IBM reported mixed results across its divisions. Software revenue climbed 7% from a year earlier but dropped 20% compared with the prior quarter. Consulting sales were down 2% year over year and sequentially, while infrastructure revenue declined 6% from the year-ago period and 32% from the previous quarter.
Despite the quarterly softness, IBM maintained a positive outlook. The company forecast Q2 revenue between $16.4 billion and $16.75 billion, with a midpoint of $16.565 billion, surpassing the $16.28 billion average analyst estimate. Full-year revenue growth is projected at 5% or more, in line with prior guidance.
“We remain bullish on the long-term growth opportunities for technology and the global economy,” CEO Arvind Krishna said in the release, affirming confidence in IBM's 2025 revenue and free cash flow goals despite economic headwinds.
