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IBM’s rebound continues with faster growth in Q1



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There were a lot of lean years for IBM when the company posted 22 straight quarters of declining revenues, an agonizing period that stretched from 2012 to 2017. Even over the subsequent years, meaningful growth was hard to find. But for the second straight quarter, Big Blue has begun to change the narrative, posting revenue growth of more than 8% in the first quarter.
That rate of growth was even stronger than what IBM recorded in Q4 2021, when it grew by 6.5%, a result that TechCrunch described as accelerating growth. (IBM also grew in Q3 2021, but a mere 0.3%, effectively unchanged.)
Shares of IBM, up more than 2% yesterday during regular trading, rose again this morning, adding more than 2% yet again in pre-market turnover. It was up 7 points in morning trading as we published this post.
Red Hat, the company IBM bought in 2018 for $34 billion, led the way with revenue growth of 18% in the first quarter compared to year-ago results. When the technology giant bought Red Hat, the idea was to bring the venerable organization into the modern age, letting it continue to run as a quasi-independent entity while taking advantage of the growth engine. It appears …

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