International Business Machines (IBM) adjusted earnings per share in Q3 was $2.58, up from expected $2.55, while revenues were $17.6 billion, same as expected but down 2.6% from prior-year quarter, according to press release. Quarterly earnings driven by strong performance on the company’s cloud business.
- IBM has the financial flexibility to increase investments in hybrid cloud and AI technology innovation and skills and to remain committed to long-standing dividend policy.
- Non-GAAP gross margin 49.0% versus 47.4% year-over-year basis
- Cloud & Cognitive solutions revenues up 7% to $5.6 billion year-over-year basis or up 6% adjusting for currency
- Global technology services revenue is $6.5 billion, down 4% year-over-year basis.
- Global business services revenues are $4.0 billion, down 5% year-over-year basis or down 6% adjusting for currency.
- Systems revenues are $1.3 billion down 15% year-over-year basis or down 16% adjusting for currency
- Company’s net cash from operating activities is $15.6 billion, with free cash flows of $10.8 billion in the last 12 months.
IBM stock declining on quarterly results. IBM: NYSE is down on premarket 2.92%.