IBM has announced the results for the third quarter of its fiscal year 2022which reflect a year-over-year revenue growth of 6%. The company entered 14,100 million dollars in the three reported months, with 7.5% growth in its Software division, 5.4% in Consulting and 14.8% in Infrastructure .
Special mention deserves the improvement in revenues in its Hybrid Cloud division. In this area, your income in the period have reached the 22 billion of dollars, 15% more than in the same period of 2021. Regarding the cash flow during the first nine months of 2022, the net cash from operating activities was 6,500 million dollars, and the free flow, of 4,100 million dollars. During the past quarter, its free cash flow was $800 million, while its net cash flow reached $1.9 billion. In addition, IBM paid its shareholders $1.5 billion in dividends during the period.
IBM’s Software division, which includes transaction processing, hybrid solutions and platforms, earned $5.8 billion in the quarter. The Red Hat area improved its results by 12% year over year, and the Process Transaction area improved by 23%. Security (1%), Artificial Intelligence and Data (1%) and Automation (2%) fell.
As for the Consulting division, it entered 4,700 million dollars in the quarter. Its Business Transformation area increased its revenues by 5% and the Technology Consulting area improved them by 6%, the same as Application Operations. IBM’s Infrastructure division entered 3,400 million dollars and its Hybrid Infrastructure area improved revenues by 33%, while IBM Systems z did so by no less than 88%.
Revenues from its Distributed Infrastructure area have improved by 13%, but those of Infrastructure Support have decreased by 3%. Finally, the financing division of IBM has entered 200 million dollars, 5.7% less.
For the full year 2022, the company expects consistent revenue growth above the 4% to 6% range. In addition, IBM continues to expect an additional contribution of about three and a half points of sales to Kyndryl, concentrated in the first three quarters of 2022. In addition, the company estimates that in 2022 it will have 10,000 million consolidated free cash flow.
Arvind Krishna, CEO of IBMhighlighted from these figures that «IBM delivered strong revenue growth in the quarter, reflecting our continued focus on executing our strategy. On a global level, clients see technology as an opportunity to improve their business, which is evident in the results of our portfolio. With our year-to-date performance, we now expect full-year revenue growth above our model, i.e. above the 4%-6% range«.
James Kavanaugh, Vice President and CFO of IBMfor his part, stressed that «both our revenues and our operating profit for the first three quarters of the year are in line with the investment theses we outlined last fall. Our portfolio mix, business foundations, strong recurring revenue stream and strong cash generation enable us to invest in continued growth and return value to investors through dividends«.
