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IBM Broke Its Losing Streak. Now What?

We think the narrow-moat firm has turned the growth corner and can post modest full-year revenue growth over the coming years.

For the quarter, total revenue rose 4% year over year to $22.5 billion (increased 1% in constant currency). Cognitive Solutions revenue was flat year over year at $5.4 billion. Within the business, traditional analytics products like data integration and content management were weak. Still, IBM continues to build out its Watson solutions software and saw good demand for these products, which is encouraging given the marketing and hype surrounding these initiatives.

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About the Author

Andrew Lange

Equity Analyst
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Andrew Lange is an equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers application software and IT services companies.

Lange joined Morningstar in 2007 as an associate equity analyst based in Auckland, New Zealand before moving to the Chicago office in 2012.

Lange holds bachelor’s degrees in economics and finance from the University of Otago in New Zealand.

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