IBM came close to climbing free from the deepening pit of declining revenue, achieving strong earnings and a subsequent share price rise.
The five and half year streak of failing revenue continues for IBM, as the tech giant racks up a 22nd consecutive quarter of decline in Q3 of 2017.
Despite the streak continuing, IBM almost clambered out of the deepening pit by achieving $19.15 billion in revenue, beating analyst predictions of $18.6 billion, according to Reuters.
Posting strong earnings per share, IBM experienced a three per cent share price rise, peaking at five per cent.
IBM’s strong results beat analyst expectations according to Thomson Reuters, gaining $3.30 in earnings per share, as opposed to a predicted $3.28.
This achievement lines the company up to end the calendar year strong with $13.80 in earning per share, again beating analyst predictions of $13.75 reported by Reuters.
Ginni Rometty, IBM chairman, president and chief executive officer, said: “In the third quarter we achieved double-digit growth in our strategic imperatives, extended our enterprise cloud leadership, and expanded our cognitive solutions business… There was enthusiastic adoption of IBM’s new Z Systems mainframe, which delivers breakthrough security capabilities to our clients.”
The Z mainframe was released targeting the current and critical problem of security, providing data encryption at every level of the network, according the company.
Martin Schroeter, IBM senior vice president and chief financial officer, said: “During the first three quarters of the year, our strong free cash flow has enabled us to maintain our R&D investments and to expand IBM’s cloud and cognitive capabilities through capital investments… In addition, we have returned nearly $8 billion to shareholders through dividends and share repurchases.”
IBM has continued to be a driving force in developing and integrating somewhat nascent technologies poised to disrupt traditional processes. A central example of this is the company’s work with blockchain, now working to use the technology in conjunction with a cryptocurrency to enhance cross-border transactions.