IBM Stock Pops On Q3 Cloud Revenue Growth
As per the financial results released by the IBM in the third-quarter of 2017 we can understand the revenue growth in the cloud. There is an increase in the price of each share and also the total revenue. In the third-quarter the company has experienced a marginal gain of $3.29 per share when compared to the last year. In the newer sectors the IBM is having a slight gain in the business as the sales were slower in some sectors during the last year.
Over the last 12 months a revenue of $15.8 billion was brought by the cloud computing which is very important to the company. A revenue of 5% is gained by the analytics of the firm and there is a growth of 7% in the mobile sales. The security sector in the IBM gained a revenue of 5%. There was free cash flow of $2.5 billion dollars by IBM in the third quarter of this year. The IBM is now projecting to post diluted and non-GAAP earnings on each share with atleast $13.80 . The free cash flow projection is also reaffirmed by the IBM. With the strategic imperatives a double-digit growth was achieved in the third quarter.
The enterprises have extended the leadership of the cloud in the enterprises and the cognitive solutions have expanded their business. The mainframe of the new z systems in IBM has an enthusiastic adoption which allows the clients to get their services delivered with proper security. The five segments in the IBM includes the Global business services, Software, Global technology services, Global financing and Systems and technology.
The revenue growth can be increased only if the efficient services are provided by the five segments. Each segment provides services according to its specalization. The revenue growth will be calculated once in every three months. So depending upon the revenue growth in four quarters of the year we can compare that with the previous years and check the stock market. If the revenue stock is very less then necessary steps should be taken by the management to increase it in the coming years.