Andrew Lange: Overall, our expectations leading into IBM's fourth quarter were anything but stellar. However, the company managed to surprise us with slightly better than expected revenue growth.
A couple of bright spots were apparent, with global business services, or GBS, outperforming sales expectations and the company's systems business managing to decline slower than we had forecast. We think the performance from GBS was particularly notable and supports our opinion that IBM as well as Accenture, remain the premier global IT services firms. We believe IBM's consulting and digital transformation skills are key assets for the firm, and we continue to see midterm growth tailwinds for this business after prior years of restructuring.
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Andrew Lange does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.