(Bloomberg)-International Business Machines Corp. gave a stronger than expected revenue growth prospects for the coming years under the leadership of the expansion in its software company.
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Long -term turnover will increase more than 5% annually, said IBM Chief Financial Officer Jim Kavanaugh on Tuesday during a presentation. Kavanaugh did not define the number of years that included in the prediction, although analysts had projected on average a growth of around 4% in constant currency for tax 2026 and 2027.
IBM has transformed from a conventional computer company into one focused on software and services. It used acquisitions to expand products, including a proposed takeover of Hashicorp Inc. announced in April and the purchase of aptio for $ 4.6 billion in 2023.
The shares rose 1.4% to $ 264.46 at the end in New York. The shares were at a record high in the event, including a jump of 13% on January 30 because of largely enthusiasm about the strong results of Big Blue’s strong fourth quarter, led by the software company, and a prediction for the turnover of 2025 “at least 5 %”In constant currency.
The long -term turnover of the software company will win around 10% annually, said Kavanaugh. Analysts had expected 7%-9%growth until 2027. The infrastructure unit will increase by 1%-3%, said Kavanaugh. Later in the decade this device will see income from Quantum Computing, he added.
Consulting, a division that has struggled in the past quarters, will grow for the market, said Kavanaugh. “The advisory market is going through a transition with the technological shift of Genai.”
The sales for overviews seem “Careful in view of the software reduction,” wrote Anurag Rana, an analyst at Bloomberg Intelligence. Although the Consulting -front views suggest that the profit in that segment ‘cannot be reflected in the short term’.
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