Source: Sharecast
Posting numbers after the bell on Wednesday, IBM confirmed revenues had risen 9% in the three months to March end, or by 6% on a constant currency basis, to $15.9bn. That was ahead of analyst expectations for $15.6bn.
Net income grew 15% to $1.2bn, with adjusted earnings per share coming in at $1.91, up 19% and ahead of forecasts for $1.81.
Chief executive Arvind Krishna called it a strong start to the year, with broad-based revenue growth across the business.
He continued: "These results reflect the integrated value of our portfolio and the trust clients put in us to improve their operations. AI continues to be a tailwind for our global business."
The firm opted to leave full-year guidance unchanged, however, for constant currency revenue growth of more than 5%. First quarter revenue growth of 11%, to $7.1bn, in the software division, IBM’s biggest unit, was also down on the fourth quarter’s 12% uplift.
As at 1430 BST, the stock was down 10%, having already lost 8% in pre-market trading.
David Morrison, senior market analyst at Trade Nation, said that while the quarterly earnings and revenues were "solid", investors had been disappointed that forward guidance was less bullish than anticipated.
According to CNBC, finance chief Jim Kavanaugh told analysts on a call following the results: "I don’t think we’ve ever raised guidance in the first quarter", and that executives wanted IBM to be a "prudent operator".