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4d ago

IBM Beats Q1 Expectations but Warns of Risks from U.S. Policies

The tech giant reports strong financial results and a growing AI contract backlog, while cautioning about potential global business challenges linked to 'America-First' policies.

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Overview

  • IBM reported Q1 revenue of $14.5 billion, a 2% increase, with earnings per share of $1.60, surpassing analyst expectations.
  • The company provided an optimistic Q2 revenue forecast between $16.4 billion and $16.75 billion, exceeding market estimates.
  • CEO Arvind Krishna highlighted concerns that U.S. 'America-First' policies could harm international perceptions of American companies, though no significant shifts in customer behavior have been observed so far.
  • IBM's AI-related contract backlog grew by $1 billion to reach a total of $6 billion, reflecting strong demand in its high-margin software segment.
  • Despite the positive financial results, IBM shares fell over 5% post-earnings, as investors reacted to concerns over political risks and market uncertainty.