IBM (IBM.N) expects to meet the upper end of its revenue growth forecast for 2022, despite a $300 million revenue hit from the suspension of its operations in Russia.

IBM, Dell Technologies Inc (DELL.N), and Hewlett Packard Enterprise Co (HPE.N) servers dominate the Russian market. Following Moscow’s invasion of Ukraine in March, IBM ceased operations.

The impact of Russia is less than “half a percent” of total revenue last year, according to Chief Financial Officer James Kavanaugh, but IBM expects a $200 million hit to profit in 2022.

Total revenue increased by 8% to $14.20 billion in the first quarter, exceeding Refinitiv data estimates of $13.85 billion. The adjusted profit of $1.40 per share also exceeded the $1.38 per share forecast.

“Despite the Ukraine crisis and Netflix’s (NFLX.O) negative results, IT giant IBM came in with good numbers, setting an encouraging tone for enterprise software and tech companies reporting next week,” said Dan Morgan, senior portfolio manager at Synovus Trust. more info

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

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