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Mar 31, 2022

IBM Q1 2022 Earnings Report

IBM's first quarter results were released, showcasing double-digit growth in Software and Consulting, driven by hybrid cloud adoption and strong profit generation.

Key Takeaways

IBM reported first-quarter 2022 revenue of $14.2 billion, up 8 percent year-over-year (11 percent at constant currency). The growth was driven by strong performance in Software and Consulting, fueled by demand for hybrid cloud and AI solutions. The company now expects revenue growth for 2022 at the high end of its model.

Revenue reached $14.2 billion, reflecting an 8% increase (11% at constant currency), with over 5 points attributed to incremental sales to Kyndryl.

Software revenue increased by 12% (15% at constant currency), with over 8 points from incremental sales to Kyndryl.

Consulting revenue grew by 13% (17% at constant currency).

Free cash flow was $1.2 billion.

Total Revenue
$14.2B
Previous year: $17.7B
-19.9%
EPS
$1.4
Previous year: $1.77
-20.9%
Gross Profit
$7.34B
Previous year: $8.2B
-10.6%
Cash and Equivalents
$9.93B
Previous year: $10.5B
-5.7%
Free Cash Flow
$1.2B
Previous year: $1.52B
-21.2%
Total Assets
$133B
Previous year: $149B
-10.3%

IBM

IBM

IBM Revenue by Segment

Forward Guidance

IBM expects constant currency revenue growth at the high end of the mid-single digit range and anticipates a 3.5 point contribution from incremental sales to Kyndryl. The company continues to expect $10 billion to $10.5 billion in consolidated free cash flow. Currency is expected to be a three to four point headwind.