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Mar 31, 2020

IBM Q1 2020 Earnings Report

IBM's first-quarter results for 2020 reflected the impact of items related to the Red Hat acquisition and showed continued cloud revenue growth, gross margin expansion and a strong balance sheet.

Key Takeaways

IBM reported first-quarter 2020 earnings with a revenue of $17.6 billion, a decrease of 3.4 percent. The diluted EPS was $1.31, and the operating (non-GAAP) EPS was $1.84. Total cloud revenue was $5.4 billion, up 19 percent. IBM is withdrawing its full-year 2020 guidance due to the COVID-19 crisis.

GAAP EPS from continuing operations was $1.31.

Operating (non-GAAP) EPS was $1.84.

Revenue was $17.6 billion, down 3.4 percent (up 0.1 percent adjusting for divested businesses and currency).

Total cloud revenue was $5.4 billion, up 19 percent (up 23 percent adjusting for divested businesses and currency).

Total Revenue
$17.6B
Previous year: $18.2B
-3.4%
EPS
$1.84
Previous year: $2.25
-18.2%
Gross Profit
$7.92B
Previous year: $8.04B
-1.5%
Cash and Equivalents
$11.2B
Previous year: $17.1B
-34.5%
Free Cash Flow
$1.36B
Previous year: $4.22B
-67.8%
Total Assets
$153B
Previous year: $131B
+17.2%

IBM

IBM

IBM Revenue by Segment

Forward Guidance

IBM is withdrawing its full-year 2020 guidance in light of the current COVID-19 crisis. The company will reassess this position based on the clarity of the macroeconomic recovery at the end of the second quarter.

Revenue & Expenses

Visualization of income flow from segment revenue to net income