---
title: "IBM's first-quarter revenue fell short of expectations, with its stock price dropping by 9%"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/202750105.md"
description: "IBM's stock price plummeted nearly 9% in after-hours trading on Wednesday, as the company's first-quarter revenue fell short of analysts' expectations. Earlier, IBM announced plans to acquire cloud software company HashiCorp for $6.4 billion in an all-cash deal, aiming to strengthen its competitiveness in the cloud computing sector"
datetime: "2024-04-25T01:27:11.000Z"
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  - [zh-CN](https://longbridge.com/zh-CN/news/202750105.md)
  - [en](https://longbridge.com/en/news/202750105.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/202750105.md)
---

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# IBM's first-quarter revenue fell short of expectations, with its stock price dropping by 9%

IBM's revenue fell short of expectations again.

On April 24th, Eastern Time, IBM announced its first-quarter performance. The financial report shows that the company's **total revenue for this quarter increased by 1.5% year-on-year to $14.46 billion, lower than analysts' expectations of $14.55 billion**. Adjusted EPS was $1.68, higher than analysts' expectations of $1.60.

Looking at the segments, both software revenue and consulting business revenue of the company fell short of market expectations. The most important revenue-generating department of IBM, the Software Business Unit, saw a 5.5% year-on-year increase in Q1 revenue to $5.9 billion, **lower than analysts' expectations of $5.96 billion**. Consulting business revenue decreased by 0.2% to $5.19 billion, **slightly lower than analysts' expectations of $5.2 billion**. In addition, the Infrastructure business declined by 0.7% year-on-year.

**Due to the revenue falling short of expectations**, IBM's stock price dropped by about 9% in after-hours trading.

Earlier, IBM announced in a statement that it intends to offer $6.4 billion to acquire cloud software development company HashiCorp, with a bid of $35 per share, enabling the company to reach approximately 4,400 customers of HashiCorp. IBM also hopes that the transaction will be completed by the end of 2024.

Analysts point out that this acquisition aims to strengthen IBM's position in the cloud computing software market. By integrating HashiCorp, IBM not only gains access to HashiCorp's technology and innovation capabilities but also expects to significantly enhance the competitiveness of its product portfolio.

IBM is optimistic about the long-term value of this acquisition. IBM expects that this transaction will increase adjusted EBITDA in the first full fiscal year and increase free cash flow in the second year.

IBM's Chief Financial Officer, Jim Kavanaugh, stated: "Overall, HashiCorp is a company growing faster than IBM. Over time, HashiCorp's strong growth momentum will accelerate IBM's overall performance."

**Media reports suggest that IBM announced this acquisition deal because the company's first-quarter revenue did not meet Wall Street analysts' expectations.**

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