Analyst Commentary

Modernization investments hinder IBM’s 1Q17 margins, while revenues continue to decline

Revenue declines persist as IBM (NYSE: IBM) maintains its focus on evolving its portfolio into a modernization enabler

1Q17 told a similar story for IBM to recent quarters, as revenues continued declining, falling 2% year-to-year to $18.2 billion. Revenue was dragged down by contracting sales for legacy solutions despite the successes of modern solutions such as IBM’s cloud and cognitive capabilities. A 13% year-to-year increase in revenues from IBM’s strategic imperatives and the solutions contribution of 42% of ove...

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