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Sep 30, 2020

IBM Q3 2020 Earnings Report

IBM's cloud business drove revenue growth and gross margin expansion, while maintaining a solid balance sheet and liquidity.

Key Takeaways

IBM reported Q3 2020 earnings with a revenue of $17.6 billion, a decrease of 2.6 percent. However, the cloud business showed strong performance, with cloud revenue up 19 percent. The company also delivered gross profit margin expansion and generated solid free cash flow.

GAAP EPS from continuing operations was $1.89.

Operating (non-GAAP) EPS was $2.58.

Total cloud revenue was $6.0 billion, up 19 percent.

GAAP gross profit margin was 48 percent, up 180 basis points; Operating (non-GAAP) gross profit margin was 49 percent, up 160 basis points.

Total Revenue
$17.6B
Previous year: $18B
-2.6%
EPS
$2.58
Previous year: $2.68
-3.7%
Gross Profit
$8.43B
Previous year: $8.34B
+1.1%
Cash and Equivalents
$14.4B
Previous year: $10.1B
+42.7%
Free Cash Flow
$1.1B
Previous year: $3.03B
-63.7%
Total Assets
$154B
Previous year: $150B
+3.0%

IBM

IBM

IBM Revenue by Segment

Forward Guidance

This document does not contain forward guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income