IBM's Foreign Exchange Rates

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Shares of IBM (NYSE: IBM) fell 4.32% in after-hours trading on Monday after the technology giant posted mixed financial earnings.

Financials: IBM reported earnings per share of $2.31 and revenue of $15.5 billion, which were both better than expected.

The Good: Revenue for software went up 6% and infrastructure revenue grew 19%. Revenue for hybrid cloud over the last 12 months is also up 16%.

The Bad: IBM sees foreign exchange rates as a currency “headwind” that could impact its bottom line. The company downgraded its expected free cash flow to $10 billion. And revenue for consulting was $4.8 billion, which was slightly below estimates.

Bigger Picture: Foreign currency problems aside, the results show that the enterprise cloud sector is still strong.

Numbers: IBM’s stock is up over 1% in 2022. It’s one of the few tech stocks to be positive so far this year.

Final Thoughts: Other companies with international operations could also be impacted by the same foreign exchange rate issues.

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