IBM Q1 Earnings 2023

IBM reported its 2023 first-quarter earnings on Wednesday, April 19, with EPS of $1.36, $0.09 better than the analyst estimate of $1.27. Revenue for the quarter came in at $14.3B versus the consensus estimate of $14.37B.

Amid the gloomy macro backdrop, IBM delivered a solid earnings report as it continues to make progress on its massive multiyear restructuring. Despite the soft sales figures and underwhelming guidance, investors blew a sigh of relief that IBM’s quarterly update was better than feared, sending the stock higher. The market was expecting a deeper slowdown due to the negative impact of shrinking corporate spending on IT services.

IBM is poised to continue to benefit from its turnaround efforts while taking advantage of strong demand for its hybrid cloud offerings, which will help power future earnings growth and allow it to focus on increasing shareholder returns. The IT giant’s solid numbers set an encouraging tone for enterprise software and tech companies reporting next week,” said Jesse Cohen, senior analyst at Investing.com