When IBM (IBM) reported Q2 numbers, the market began the obsession with the lack of revenue growth. People couldn't wait to claim the tech giant just reported the 21st quarter of revenue declines, yet the projections are for ongoing revenue declines into 2018 so this really isn't news.
The stock is down some 4% in after-hours trading despite another EPS beat and the maintaining of annual earnings and cash flow guidance. For the following reasons, investors should quit sweating the revenue situation.
As long pointed out, IBM is slowly shifting to strategic imperatives. The company has the plan in place to ultimately limit the downside on revenues plunging for eternity. The annual runrate grew from $33.6 billion in Q1 to $34.1 billion in Q2.
