New York: Shares of International Business Machines Corp (IBM) are jumping 6.3 per cent in pre-market trading after the company’s 2019 forecast and fourth quarter results beat analysts’ estimates.
That was IBM’s “cleanest quarter in years,” Morgan Stanley analysts, including Katy Huberty, wrote in a note.
Results showed a stronger-than-expected rebound for software after a weak third quarter, though Morgan Stanley sees slower software growth in the first quarter.
IBM’s services “transformation” is also “bearing fruit,” Huberty wrote, as total services revenue grew 2 per cent.
CIOs had ranked cloud computing, digital transformation, and BI/analytics as their top three priorities.