(Source: Reuters) IBM said on Tuesday that it expects to hit the top end of its revenue growth forecast for 2022, despite a $300 million revenue hit from the suspension of its business in Russia.

The market in Russia is dominated by servers from IBM, Dell Technologies Inc (DELL.N), and Hewlett Packard Enterprise Co (HPE.N). Following Moscow’s invasion of Ukraine in March, IBM halted operations.

According to IBM Chief Financial Officer James Kavanaugh, the impact of Russia is less than “half a percent” of overall sales last year, but the company estimates a $200 million damage to earnings in 2022.

According to Refinitiv statistics, total sales increased 8% to $14.20 billion in the first quarter, exceeding predictions of $13.85 billion. The adjusted profit of $1.40 per share also above the $1.38 per share forecast.

“Despite the Ukraine situation and Netflix’s (NFLX.O) dismal results, IBM came in with solid numbers, setting a hopeful tone for business software and tech companies reporting next week,” said Dan Morgan, senior portfolio manager at Synovus Trust. find out more

In extended trading, the company’s shares were up 3%.

IBM has banked on high-growth software and consulting businesses with a focus on the so-called “hybrid cloud” after selling off its huge and sluggish IT-managed infrastructure business last year.

During the reporting quarter, cloud revenue increased by 14% to $5 billion.

The century-old firm said it expects to exceed its mid-single-digit sales growth target for this year, with the consultancy division driving the increase.

Analysts predict yearly sales of $60.69 billion, representing a 5.8% increase year over year.

Despite the Ukraine situation, Kavanaugh told Reuters that companies trying to digitise processes are driving robust demand for advisory services, notably in Europe.

He did, however, mention wage inflationary pressures in the industry.

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