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Jun 30, 2023

IBM Q2 2023 Earnings Report

IBM's second-quarter results were released, demonstrating solid growth in software and consulting revenue, alongside strong gross profit margin expansion.

Key Takeaways

IBM reported second-quarter revenue of $15.5 billion, a slight decrease of 0.4 percent year-over-year, but up 0.4 percent at constant currency. The company saw growth in software and consulting, with software revenue up 7 percent and consulting revenue up 4 percent. IBM continues to expect constant currency revenue growth of three percent to five percent and about $10.5 billion in free cash flow for the full year.

Revenue was $15.5 billion, down 0.4 percent, but up 0.4 percent at constant currency.

Software revenue increased by 7 percent, or 8 percent at constant currency.

Consulting revenue grew by 4 percent, or 6 percent at constant currency.

Infrastructure revenue decreased by 15 percent, or 14 percent at constant currency.

Total Revenue
$15.5B
Previous year: $15.5B
-0.4%
EPS
$2.18
Previous year: $2.31
-5.6%
Gross Profit
$8.5B
Previous year: $8.29B
+2.5%
Cash and Equivalents
$9.39B
Previous year: $7.03B
+33.6%
Free Cash Flow
$2.1B
Previous year: $2.1B
+0.0%
Total Assets
$132B
Previous year: $128B
+3.7%

IBM

IBM

IBM Revenue by Segment

Forward Guidance

IBM continues to expect constant currency revenue growth of three percent to five percent. The company continues to expect about $10.5 billion in free cash flow, up more than $1 billion year to year.

Positive Outlook

  • The company continues to expect constant currency revenue growth of three percent to five percent.
  • Currency is expected to be neutral to revenue growth.
  • The company continues to expect about $10.5 billion in free cash flow.
  • Free cash flow is expected to be up more than $1 billion year to year.