Yahoo Finance As Expected, IBM Continued Its No-Revenue Growth Trend in 1Q16
IBM Revenue Fell Again in 1Q16, Despite Strategic Imperatives
IBM fails to report revenue growth, beats analyst expectations
As scheduled, IBM (IBM) posted its fiscal 1Q16 earnings on April 18, 2016. IBM’s peers that are next in line to announce their earnings this week are SAP (SAP), Citrix Systems (CTXS), and Microsoft (MSFT).
For 1Q16, IBM reported revenues of $18.7 billion and non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $2.35. That beat analysts’ expectations by $400 million and $0.26, respectively.
Fiscal 1Q16 marked the 16th quarter of no revenue growth
On a year-over-year basis, IBM’s fiscal 1Q16 revenues fell 4.6%, making it the 16th consecutive quarter of no revenue growth. For more information on why IBM is struggling with no revenue growth, read Key Factors that Weighed IBM Down in Fiscal 3Q15.
Fiscal 1Q16 is also the first quarter that IBM reported its reclassified operating segments. The newly reclassified segments are Cognitive Solutions, Technology Services & Cloud Platforms, and Systems. Global Business services and Global Financing will continue to operate, as you can see in the above chart.
Later in the series, we’ll see how the fall in the US dollar (UUP) failed to offer any respite to IBM’s fiscal 1Q16 results. We’ll also look at the company’s individual operating segments’ performances as well as the performance of Strategic Imperatives.
In the next part, we’ll look at IBM’s geographies and whether they reported any revenue growth in fiscal 1Q16.
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