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Sep 30, 2021

IBM Q3 2021 Earnings Report

Revenue performance was led by consulting and software, with solid cash generation.

Key Takeaways

IBM reported third-quarter results with revenue of $17.6 billion, up 0.3 percent. The company is making progress in its software and consulting businesses, which represent higher growth opportunities. IBM is confident in achieving its medium-term objectives of mid-single digit revenue growth and strong free cash flow generation.

Revenue of $17.6 billion, up 0.3 percent (down 0.2 percent adjusting for divested businesses and currency)

Cloud & Cognitive Software up 3 percent (up 2 percent adjusting for currency)

Global Business Services up 12 percent (up 11 percent adjusting for currency)

Red Hat revenue up 17 percent, normalized for historical comparability

Total Revenue
$17.6B
Previous year: $17.6B
+0.3%
EPS
$2.52
Previous year: $2.58
-2.3%
Gross Profit
$8.17B
Previous year: $8.43B
-3.1%
Cash and Equivalents
$7.46B
Previous year: $14.4B
-48.2%
Free Cash Flow
$600M
Previous year: $1.1B
-45.5%
Total Assets
$144B
Previous year: $154B
-6.4%

IBM

IBM

IBM Revenue by Segment

Forward Guidance

IBM is confident in achieving its medium-term objectives of mid-single digit revenue growth and strong free cash flow generation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income