Latest news with #BigBlue
Reuters
8 hours ago
- Business
- Reuters
IBM's software sales disappoint, eclipsing AI mainframe revival
July 23 (Reuters) - IBM (IBM.N), opens new tab beat Wall Street estimates for second-quarter revenue and profit on Wednesday, but lower-than-expected sales in its mainstay software segment overshadowed a renewal in demand for the mainframe business spurred by AI upgrades. IBM's shares fell 5% in extended trading, after a nearly 30% rise this year driven by investors betting on prioritized software spending as businesses navigated macroeconomic uncertainty and ongoing trade negotiations. "You're seeing the stock pull back, because there's just not a lot of room to miss," said Dan Morgan, senior portfolio manager at Synovus Trust, which holds shares in IBM. "This would be more evidence that software is not growing at the pace that the street was expecting." IBM's software segment, which has traditionally been a bright spot, reported sales of $7.39 billion, missing estimates of $7.41 billion. Still, the Big Blue reported revenue of $16.98 billion for the June quarter, beating analysts' average estimate of $16.59 billion, according to data compiled by LSEG. Adjusted earnings of $2.80 per share also beat estimates. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion. Sales of IBM's latest AI-specialized mainframe kicked off in June, boosting second-quarter revenue. Its "AI book of business," which combines bookings and actual sales, grew to $7.5 billion, up $1.5 billion from the previous quarter. Investors might be unimpressed, however, as the book is "cumulative, not revenue, and lacks granularity," said Michael Ashley Schulman, Running Point Capital's chief investment officer. IBM did not provide a forecast for the third quarter, after it broke tradition in April and issued a one-off quarterly outlook to give investors more clarity at a time when U.S. President Donald Trump's global tariffs were first going into effect. "That quarterly guidance was really driven by the unprecedented volatility of the foreign exchange markets" finance chief Jim Kavanaugh told Reuters. "What is different over the past 90 days — the FX world is kind of stabilized ... so we reverted back to our standard practice." Consulting sales grew 3%, ending five consecutive quarters of revenue declines, as businesses seek expertise on integrating AI products.
CNA
8 hours ago
- Business
- CNA
IBM's software sales disappoint, eclipsing AI mainframe revival
IBM beat Wall Street estimates for second-quarter revenue and profit on Wednesday, but lower-than-expected sales in its mainstay software segment overshadowed a renewal in demand for the mainframe business spurred by AI upgrades. IBM's shares fell 5 per cent in extended trading, after a nearly 30 per cent rise this year driven by investors betting on prioritized software spending as businesses navigated macroeconomic uncertainty and ongoing trade negotiations. "You're seeing the stock pull back, because there's just not a lot of room to miss," said Dan Morgan, senior portfolio manager at Synovus Trust, which holds shares in IBM. "This would be more evidence that software is not growing at the pace that the street was expecting." IBM's software segment, which has traditionally been a bright spot, reported sales of $7.39 billion, missing estimates of $7.41 billion. Still, the Big Blue reported revenue of $16.98 billion for the June quarter, beating analysts' average estimate of $16.59 billion, according to data compiled by LSEG. Adjusted earnings of $2.80 per share also beat estimates. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion. Sales of IBM's latest AI-specialized mainframe kicked off in June, boosting second-quarter revenue. Its "AI book of business," which combines bookings and actual sales, grew to $7.5 billion, up $1.5 billion from the previous quarter. Investors might be unimpressed, however, as the book is "cumulative, not revenue, and lacks granularity," said Michael Ashley Schulman, Running Point Capital's chief investment officer. IBM did not provide a forecast for the third quarter, after it broke tradition in April and issued a one-off quarterly outlook to give investors more clarity at a time when U.S. President Donald Trump's global tariffs were first going into effect. "That quarterly guidance was really driven by the unprecedented volatility of the foreign exchange markets" finance chief Jim Kavanaugh told Reuters. "What is different over the past 90 days — the FX world is kind of stabilized ... so we reverted back to our standard practice."
USA Today
16 hours ago
- Sport
- USA Today
New York Giants' Jamie Gillan leaves No. 6 to Jaxson Dart, switches to No. 12
New York Giants rookie quarterback Jaxson Dart will wear No. 6 for Big Blue this season. The issue was seemingly settled this week when the player currently donning the number, punter Jamie Gillan, switched to No. 12. Gillan now shares the jersey number with wide receiver Jordan Bly, who is unlikely to make the team. Dart, who was selected 25th overall in this year's NFL draft by the Giants, would love to wear No. 2 -- the number he wore in college at Ole Miss-- but another former Giants' first-round pick, cornerback Deonte Banks, just took the number over this past offseason and is not going to surrender it cheaply. Dart and Banks discussed a possible trade for No. 2, but Dart claimed Banks wanted "too much" in return. Banks switched from No. 3 to No. 2 after the Giants signed 10-time Pro Bowl quarterback Russell Wilson in free agency this past offseason. Wilson will wear No. 3. This doesn't mean Dart's quest for No. 2 is over. Wilson is signed for just this season, and Banks has two years left on his rookie deal. If Wilson does not return in 2026, Banks could likely reclaim his old number. Then again, if Banks doesn't pick up his game, he could be gone in two years, leaving No. 2 vacant for Dart to snatch up.
USA Today
5 days ago
- Sport
- USA Today
Lane Kiffin: New York Giants' Jaxson Dart is the total package
What are the New York Giants getting in rookie quarterback Jaxson Dart? Well, his former college coach at Ole Miss, Lane Kiffin, believes Big Blue could be getting an elite player. Kiffin, who coached Dart for three seasons at Ole Miss, sees him as the "complete package" who is a "quick learner." "If he is struggling with something, he's going to find a way. He's going to stay after. He's going to do whatever it takes," Kiffin said in a recent appearance on the Giants Huddle podcast. Kiffin also said that Dart is excellent at processing large chunks of information very quickly. "I think for some that can be too much information because we're 'chunking' him a lot of information," Kiffin said. "And most of our plays are snapped before 15 [seconds on the play clock], so he's getting a lot of information right up to the snap. He was great with that." Kiffin said that Dart has a lot of Eli Manning in him, but also has an aggressive element to his game. His father was a defensive player at Utah, and Dart sometimes opts to take unnecessary hits rather than live to play another day. "We worked with him a lot on that," Kiffin said. "That takes some time to get out of him. It'll still show up once in a while, but he's learned to play times throughout the week, he's very calm." The Giants plan on bringing Dart along slowly, as there is no need to throw him to the lions right away. They have two veteran quarterbacks in front of him in Russell Wilson and Jameis Winston, and will not play Dart until the time is right.
Yahoo
5 days ago
- Business
- Yahoo
Analysts reboot IBM stock price target ahead of earnings
Analysts reboot IBM stock price target ahead of earnings originally appeared on TheStreet. Big Blue is making a quantum leap — for real. International Business Machines () , which once held most of the world's stored data on punch cards, has been making its presence felt in the world of quantum computing. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 Quantum computing, by the way, uses the principles of quantum mechanics to solve complex problems that would drive classical computers stark raving goofy. And these mighty machines are mighty fast. A human would have to perform one sum every second for c.50 quintillion years to equal what a quantum computer can do in a single second, according to a research note by Bank of America Securities. "This could be the biggest revolution for humanity since discovering fire," B of A said. "A technology that can perform endless complex calculations in zero-time, warp-speeding human knowledge and development." Theoretically, the firm said, "there is no calculation a quantum computer cannot do." IBM shares hit record high Processing power, the backbone of technology, is led by the U.S., B of A said. "Quantum, the first new platform technology for computers since digital technology, can level the tech playing field and reset everything," the investment firm said. More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time) Veteran portfolio manager raises eyebrows with latest Meta Platforms move Google plans major AI shift after Meta's surprising $14 billion move Whoever wins the quantum race will gain an unprecedented geopolitical, technological and economic advantage, the firm said. "Government quantum funding announcements have totaled in the area of $42 billion, of which 35% has been made by China," the firm said. The IBM Q System One, introduced in 2019, was the world's first integrated universal quantum computing system designed for scientific and commercial use, BofA said. IBM Q System Two, the successor, was unveiled in 2023. IBM said recently that it was joining with biotech and pharmaceutical giant Moderna () to explore how algorithms could help create mRNA-based medicines. "Understanding how proteins fold from a given nucleotide sequence is crucial for creating effective mRNA vaccines," IBM said. "This study is a powerful example of the progress the quantum community is making toward quantum advantage — the point at which quantum computers are shown to be more efficient, more accurate, or cheaper than classical computers for a particular task," the company said. The results of the latest study show an improvement over 2024, when IBM and Moderna first developed an approach to accelerate the creation of mRNA-based medicines. In June, IBM shares hit a record high after the company unveiled a "feasible path" to build the world's first large-scale fault-tolerant quantum computer by 2030. That's one that can effectively suppress inevitable errors during quantum operations, which has been a problem with quantum computing. Analyst sees software-driven quarter for IBM During IBM's first-quarter earnings call in April, CEO Arvind Krishna told analysts that IBM partnered with the Basque government to deploy Europe's first IBM Quantum System Two in Spain, 'a milestone in global quantum leadership.' IBM is scheduled to report second-quarter earnings on July 23. The company's stock is up 28% this year and has surged 50% from this time in firms have issued research reports regarding IBM's earnings release, including RBC Capital, which raised its price target on Big Blue to $315 from $285 and affirmed an outperform rating on the shares. Q2 will likely be driven by the software lines, with a focus on potential Red Hat reacceleration, generative-artificial-intelligence bookings, and staying on pace with free cash flow seasonality, the firm said, according to The Fly. IBM's $34 billion acquisition of software provider Red Hat, completed in 2019, was the largest in the company's history and one of the biggest in U.S. tech. Traction around generative AI and management of multiple agentic-AI operations should remain in focus as the company positions to enable enterprises to adopt AI, RBC added. Stifel analyst David Grossman raised the investment firm's price target on IBM to $310 from $290 and maintained a buy rating. While fundamentals are stable/positive, predicting upward earnings revisions in the current environment might be difficult, Grossman says. This creates incremental risk heading into the earnings report and might suggest that a post-Q2 report would provide a more opportunistic entry point for investors, Grossman said. Morgan Stanley raised its price target on IBM to $253 from $233 while reiterating an equal-weight rating on the shares. The firm said the market was already pricing in more than just free-cash-flow upside for IBM. Given the expectation for more mixed software and consulting results this quarter, Morgan Stanley says the setup into Q2 earnings leans tactically reboot IBM stock price target ahead of earnings first appeared on TheStreet on Jul 17, 2025 This story was originally reported by TheStreet on Jul 17, 2025, where it first appeared.
