IBM cuts its full-year sales outlook after reporting weaker demand for its mainframe business, according to multiple reports. The company’s update follows preliminary earnings released earlier, which showed soft sales for infrastructure and related software. Bloomberg reports that IBM lowers its overall guidance and also trims expectations for its software unit, a closely watched part of the company’s results. The Next Web adds that IBM’s mainframe demand declines sharply during the second quarter, with reported demand down 42%. In response, IBM reduces its revenue growth target to about four to five percent, down from a prior forecast of more than five percent. NDTV similarly notes that Wall Street expects the company to adjust its outlook after the earlier earnings signals pointed to weak sales in infrastructure and associated software. Across the coverage, the common focus is that the guidance change reflects reduced mainframe demand and its knock-on effects for IBM’s broader revenue outlook and software guidance. IBM is not described as changing its broader strategy in these accounts, but the guidance revisions indicate an expectation of continued softness in mainframe-related business.
IBM Cuts Full-Year Sales Outlook as Mainframe Demand Weakens
IBM cuts its full-year sales outlook after reporting weaker demand for its mainframe business, according to multiple reports. The company’s update follows preliminary earnings released earlier, which...
- IBM cuts its full-year sales and revenue outlook after weaker mainframe demand.
- Mainframe demand drops sharply in the second quarter, reported as down 42%.
- IBM lowers its revenue growth target to about four to five percent from a prior forecast of more than five percent.
- IBM trims guidance for its software unit alongside its overall outlook.
- The guidance cuts come after preliminary earnings showed weak sales for infrastructure and associated software.
Many on Wall Street anticipated that IBM would cut its outlook after the company reported preliminary earnings last week that showed weak sales for its infrastructure and associated software.
4 hours agoIBM cut its full-year sales outlook on Wednesday after reporting a sharp drop in demand for its mainframe business, lowering its revenue growth target to four to five percent from a prior forecast of more than five percent. The company also trimmed its software unit guidance, with CFO Jim Kavanaugh telling Bloomberg that annual software […] This story continues at The Next Web
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