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Mar 31, 2021

IBM Q1 2021 Earnings Report

IBM's first quarter reflected growth in cloud adoption and software, resulting in a return to revenue growth and strong cash flow.

Key Takeaways

IBM reported a 1% increase in revenue to $17.7 billion, driven by growth in cloud and cognitive software, systems, and global business services. The company's GAAP EPS was $1.06, and operating EPS was $1.77. IBM's cloud revenue increased by 21% to $6.5 billion, and the company generated $2.2 billion in adjusted free cash flow.

GAAP EPS from continuing operations was $1.06; Operating (non-GAAP) EPS was $1.77.

Revenue reached $17.7 billion, up 1 percent (down 2 percent adjusting for currency).

Total cloud revenue was $6.5 billion, up 21 percent (up 18 percent adjusting for divested businesses and currency).

Red Hat revenue increased by 17 percent (up 15 percent adjusting for currency), normalized for historical comparability.

Total Revenue
$17.7B
Previous year: $17.6B
+0.9%
EPS
$1.77
Previous year: $1.84
-3.8%
Gross Profit
$8.2B
Previous year: $7.92B
+3.6%
Cash and Equivalents
$10.5B
Previous year: $11.2B
-6.1%
Free Cash Flow
$1.52B
Previous year: $1.36B
+12.1%
Total Assets
$149B
Previous year: $153B
-3.1%

IBM

IBM

IBM Revenue by Segment

Forward Guidance

IBM expects to grow revenue for the full year 2021 and adjusted free cash flow of $11 billion to $12 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income