IBM Reports Higher-Than-Expected Q1 Profit, But Revenue Of $19.6B Disappoints


Following the cessation of regular trading this afternoon, IBM reported its first-quarter financial performance. The company reported higher-than-expected adjusted profit on a per-share basis of $2.91, but the company’s $19.59 billion in period-revenue was under street expectations of $19.64 billion.

The company now has a run of 12 straight quarters of declining revenue.

IBM’s situation requires some context, as it adjusts when reasonable for currency strength changes, and also for its recently divested businesses. Using constant currency from the year-ago quarter, and also adjusting for the company’s now slimmer size, IBM had flat year-over-year revenues.

Not adjusting for those impacts, IBM’s revenue shrank 12 percent. Here’s an unadjusted chart from material provided by IBM, concerning its divisional revenue declines on a yearly basis:

Screen Shot 2015-04-20 at 2.29.02 PM

It’s worth remembering that IBM missed on revenue by a slim margin. As such, those declines are less sharp than they appear, and they are very nearly in-line with…

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