International Business Machines Corp. lowered its forecasts for free cash flow this year due to the impact of a strong dollar and the loss of business in Russia, sending the shares down.
The revision overshadowed results that topped analysts’ estimates, signaling that demand for mainframe computers, consulting and cloud services remains strong amid concerns of a pullback in tech spending.
IBM said it estimates free cash flow of $10 billion this year, at the low end of a previous range of $10 billion to $10.5 billion. The reduced range isn’t a result of a broader business slowdown Chief Financial Officer Jim Kavanaugh said in an interview. “Our demand remains solid,” he said.
