Red Hat Inc RHT reported its first-quarter earnings results on Thursday. According to the report, the company's Q1 billings and revenue were slightly better than the consensus, while the earnings per share and operating margin were a bit lower compared to the estimates.
Red Hat posted billings' year-on-year growth of 16 percent in Q1, which represents the highest growth since 2015. Despite management's remarks that the large deals push out billings because of their pay-as-you-go terms, the deal's over $1 million saw a 50 percent year-on-year growth.
"The company saw strong large deal activity, but slightly weaker renewal up-sells, which the company blamed on certain government renewals," wrote Barclays, stating it expects the stock to see pressure in the short term.
Given these results, Barclays restated its bullish outlook on Red Hat, keeping its $90 target unchanged.
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