International Business Machines Corp. posted higher revenue ahead of a landmark split of the business this year that is part of Chief Executive Arvind Krishna’s plan to revive growth at the veteran tech company.
IBM on Monday said first quarter sales rose about 1% to $17.73 billion, generating net income of $955 million. Wall Street on average expected sales of $17.32 billion and net income of $1.28 billion, according to FactSet.
IBM still expects revenue to grow this year and anticipates $11 billion to $12 billion in adjusted free cash flow for the year.
IBM shares rose more than 3% in after-hours trading. The stock is up about 11% in the past 12 months.
Mr. Krishna, in the top job a year, has pledged to restore growth at IBM this year after a prolonged period of stagnation. The company expects revenue to return to growth and projects about $11 billion to $12 billion in adjusted free cash flow for the year and $12 billion to $13 billion in 2022.
