Latest news with #SynovusTrust
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."
Yahoo
28-05-2025
- Business
- Yahoo
Nvidia earnings need a 'CPA to interpret,' portfolio manager says
Nvidia's (NVDA) first quarter results beat on revenue, but a $4.5B charge tied to its H20 chip complicates the picture. Synovus Trust senior portfolio manager Daniel Morgan joins Asking for a Trend to break down the numbers and what they mean for Nvidia's outlook in China and beyond. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Tech Stocks Wobble on Trade Concerns
Daniel Morgan, senior portfolio manager at Synovus Trust Company, discusses the factors putting stocks under pressure following a four-day rally. He joins Caroline Hyde on "Bloomberg Technology."
