Latest news with #DanMorgan
The Star
5 days ago
- Business
- The Star
IBM's software sales disappoint, eclipsing AI mainframe revival
The IBM logo is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier (Reuters) -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% 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 analysts' average estimate of $7.41 billion, according to data compiled by LSEG. Customers funneled investment towards IBM's latest AI-specialized mainframes, diverting revenue from transaction processing, which primarily accounts for software run on the mainframe, finance chief Jim Kavanaugh told Reuters. Transaction processing sales — which were mostly flat in the quarter — are housed in the software unit, dragging the segment's performance. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion. The Big Blue reported revenue of $16.98 billion for the June quarter, beating estimates of $16.59 billion. Adjusted earnings of $2.80 per share also beat estimates. Consulting sales grew 3%, ending five consecutive quarters of revenue declines, as businesses seek expertise on integrating AI products. However, given the "current demand environment," IBM is "prudently cautious" on how much the consulting segment might contribute to further growth this year, Kavanaugh said during a post-earnings call. Its "AI book of business," which combines bookings and actual sales, grew to $7.5 billion, up $1.5 billion from the previous quarter. 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. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona)
Business Times
5 days ago
- Business
- Business Times
IBM's software sales disappoint, eclipsing AI mainframe revival
[BENGALURU] IBM beat Wall Street estimates for second-quarter revenue and profit on Wednesday (Jul 23), but lower-than-expected sales in its mainstay software segment overshadowed a renewal in demand for the mainframe business spurred by artificial intelligence (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 prioritised software spending as businesses navigated macroeconomic uncertainty and ongoing trade negotiations. 'You are 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 US$7.39 billion, missing analysts' average estimate of US$7.41 billion, according to data compiled by LSEG. Customers funnelled investment towards IBM's latest AI-specialised mainframes, diverting revenue from transaction processing, which primarily accounts for software run on the mainframe, finance chief Jim Kavanaugh said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Transaction processing sales, which were mostly flat in the quarter, are housed in the software unit, dragging the segment's performance. The infrastructure segment, which houses its mainframe, reported revenue of US$4.14 billion, beating estimates of US$3.81 billion. The Big Blue reported revenue of US$16.98 billion for the June quarter, beating estimates of US$16.59 billion. Adjusted earnings of US$2.80 per share also beat estimates. Consulting sales grew 3 per cent, ending five consecutive quarters of revenue declines, as businesses seek expertise on integrating AI products. However, given the 'current demand environment', IBM is 'prudently cautious' on how much the consulting segment might contribute to further growth this year, Kavanaugh said during a post-earnings call. Its 'AI book of business', which combines bookings and actual sales, grew to US$7.5 billion, up US$1.5 billion from the previous quarter. 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 US President Donald Trump's global tariffs were first going into effect. REUTERS
Reuters
5 days 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
5 days 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."
New York Times
5 days ago
- Sport
- New York Times
Panthers observations: Rookie pass rusher overly aggressive pursuing Bryce Young
CHARLOTTE, N.C. — Dan Morgan kicked off training camp Tuesday with an opening statement in which the Carolina Panthers general manager outlined the goals for the season. Morgan mentioned improving consistency, developing the team's young core, leaning on the vets for leadership and competing every week with a 'relentless, team-first mindset.' Advertisement Morgan, the former Panthers linebacker, never mentioned the playoffs. Neither did Dave Canales following the Panthers' first practice on Wednesday. But Canales was much more bullish on his team's chances than at any point during his first season as a head coach. 'I think that the sky's the limit for this group. I think that this is going to be a very competitive team. I don't think people are gonna want to play us, by the style of football that we play,' Canales said. 'I'm expecting that. My expectations are really high for this group. They are every year.' The Panthers improved from two wins to five after hiring Canales, who spent one season as Tampa Bay's offensive coordinator after a dozen years as a Seattle Seahawks assistant. Another three-win improvement would put the Panthers just under .500, and a nine-win season could put them in contention for their first playoff berth since 2017. But we're getting way ahead of ourselves, considering the Panthers have only had one practice — in shorts and helmets. There were some instructive moments in Wednesday's first session, so let's get to our seven observations. Umanmielen was known for his speed rush and crazy bend over four seasons at Florida and one at Ole Miss. The third-round pick didn't wait long to show off both Wednesday. The 6-4, 244-pounder came off the edge late in team drills and got a hand on Bryce Young's arm to force a fumble. Great play, except defenders aren't supposed to put their hands on the quarterback. Practice ended quickly after that play, with Canales calling the players up and reminding them to take care of each other. Dave Canales on Princely Umanmielen play on Bryce Young: Liked the explosiveness, didn't like the contact. — Joe Person (@josephperson) July 23, 2025 'A really close one. But great rush, exactly why he's here — to be able to affect the passer. Just came really tight around that corner and kind of nicked Bryce in the arm right there. The ball comes out and that's really not what we want to see,' Canales said. 'I want to see that first part of it, though. Just the great bend and flexibility and power that he has in his rushes. So even some of the veteran guys … were like, 'Hey, don't back off that. Just be smart at the top.' ' Advertisement Young, who came away unscathed, figured it was just a rookie trying to make an impression. 'I didn't have to say anything. That's competition. It's football,' he said. 'Obviously, there's some etiquette stuff in football. But young guy getting after it his first day out here at training camp. And shoot, we want to see those plays on Sunday.' Those type of impact plays were few and far between for the Panthers last year. Umanmielen looks capable of making a bunch of them. Better that it happened on the first day than during a padded practice two weeks into camp. Some Panthers fans have been clamoring for the team to sign a veteran safety to start alongside free-agent acquisition Tre'von Moehrig. One of those guys is off the market after Julian Blackmon, who visited Carolina in the spring, agreed to terms with the New Orleans Saints in the wake of Tyrann Mathieu's retirement. There are other available safeties, but Wednesday a guy already on the roster made his own case. Demani Richardson, an undrafted free agent who started five games as a rookie, displayed great range and ball skills in intercepting a Young deep throw that was intended for Hunter Renfrow. 'He's got a knack for the ball. It started last year,' Canales said of Richardson, who had one pick as a rookie. 'So he shows up again on the first day with an interception on a ball that was slightly overthrown there. And he went from the middle of the field and made a great play on that.' Pro Bowl cornerback Jaycee Horn wasn't surprised to see Richardson come up big. After all, he played at Texas A&M. 'Demani came out of the SEC, so I expected him to be a high-level player,' said Horn, the former South Carolina standout. 'And he's turning into just that.' Richardson is also turning into an effective communicator, a requisite trait at a position that serves as a traffic cop at the back end of the defense. Richardson wasn't super vocal last year in a safety room that included veterans Nick Scott, Jordan Fuller, Xavier Woods and Sam Franklin. But now that everyone but Scott is gone from that group, Richardson is letting his voice be heard. Advertisement 'He's gotta be connected with the corner, the nickel. Calls that are coming with motions and all those things,' Canales said. 'And I think that's probably the biggest growth I've seen from Demani is his level of comfort in our system, to be able to talk loudly.' Horn said Richardson is communicating at a high level and making plays. 'And I think he's just going to get better and better.' Canales, Horn and linebacker Christian Rozeboom all responded to questions about Josey Jewell by first expressing compassion for their former teammate, who was cut Tuesday after being unable to clear the concussion protocol seven months after his initial head injury. Rozeboom was only around Jewell for a few months, but the former Denver Broncos linebacker left an impression. 'You care about him as a human first and foremost,' Rozeboom said. 'It was great to get to know him and hopefully continue that relationship, and maybe play together someday once he heals up.' Canales called Jewell a 'no-nonsense guy' while praising his leadership skills. 'The toughness, the character, the aggressive style of play,' he said. 'Always making plays on the ball throughout his career. It's the reason why we brought him here.' The Panthers signed Rozeboom in March to a one-year, $2.5 million contract, not exactly starter's money. Despite his 135-tackle season in his final season with the Los Angeles Rams, Carolina brought Rozeboom as a special teams and depth piece. But there Rozeboom was Wednesday wearing the green dot on his helmet as the player responsible for calling the defensive signals. Rozeboom, 28, was in a similar situation last year in L.A. when he was thrust into a starting role after the Rams traded Ernest Jones late in camp. He responded with a career season while finishing with the 17th-highest tackle total in the NFL. Advertisement 'Christian had like 136 tackles or something last year, played on a playoff defense. Really played probably the best year of his career,' Canales said. 'And for us to be able to have him here, it's huge.' Rozeboom and Trevin Wallace are the presumptive starters at inside linebacker. Horn conceded that he didn't pay much attention to the linebackers Wednesday, and wouldn't have put much stock into it anyway since it was a non-contact practice. That said, Horn thought things went smoothly. 'Communication and stuff in the huddle was A-1,' he said. 'And I feel like everybody got the call around the defense and we played fast.' Any attention on the kicking competition during the spring focused on undrafted rookie Ryan Fitzgerald. Part of that was logistics: The way the schedule fell, Fitzgerald always seemed to be the guy kicking on the days the media was allowed to watch practice. But veteran Matthew Wright took aim at the tight goal posts Wednesday, and made 4 of 5 field goal attempts while showing good range in the process. Wright has kicked for six teams in five seasons, including a one-game cameo with the Panthers at the end of 2023. Fitzgerald has felt like the favorite in this competition, but Wright could make it interesting. Bryce to JT Sanders, a connection the Panthers hope to see a lot of this year. — Joe Person (@josephperson) July 23, 2025 Tommy Tremble showed up Wednesday wearing athleisure and a bucket hat, and didn't look like someone close to being ready. He's not. Canales said Tremble is in a week-to-week status following back surgery in May, adding that three to four weeks likely would be the earliest Tremble could return. In the meantime, the Panthers will look to Ja'Tavion Sanders, rookie Mitchell Evans and new pickup Tyler Mabry for plays in the passing game. Sanders is 10 pounds lighter and a little faster than he was during his 33-catch rookie season. Sanders' speed was evident on a seam route Wednesday when a defensive back resorted to holding him rather than risk having him get behind him when Young was looking Sanders' way.
