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April 24 - International Business Machines (NYSE:IBM) 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.
This article first appeared on GuruFocus.