IBM today announced second-quarter results.
Highlights
- GAAP EPS from continuing operations of $2.61; Operating (non-GAAP) EPS of $3.08; both up 5 percent
- GAAP Pre-tax income up 14 percent; Operating (non-GAAP) pre-tax income up 11 percent
- -- Pre-tax margins expanded more than 100 basis points year to year
- Revenue of $20.0 billion, up 4 percent (up 2 percent adjusting for currency)
- Strategic imperatives revenue of $39.0 billion over last 12 months, up 15 percent (up 12 percent adjusting for currency); represents 48 percent of IBM revenue
- Cloud revenue of $18.5 billion over last 12 months, up 23 percent (up 20 percent adjusting for currency)
- As-a-service annual exit run rate for cloud revenue of $11.1 billion in the quarter, up 26 percent year to year (up 24 percent adjusting for currency)
- Maintains full-year operating (non-GAAP) EPS and free cash flow expectations
"We delivered strong revenue and profit growth in the quarter, underscoring IBM's progress and momentum in the emerging, high-value segments of the IT industry," said Ginni Rometty, IBM chairman, president and chief executive officer. "More clients are engaging IBM on their journey to the cloud, and deploying IBM Cloud, Watson AI, analytics, blockchain and security solutions. This demonstrates IBM's unique leadership in providing innovative technology coupled with deep industry expertise, trust and security."
"We increased revenue, grew pre-tax income double digits and expanded pre-tax income margins year to year, while continuing to invest in the business and return capital to shareholders," said James Kavanaugh, IBM senior vice president and chief financial officer. "We remain focused on delivering consistent operational performance, in line with our longer-term model."