International Business Machines Corp

Latest Results (14.08.2024):

Revenue Growth

International Business Machines Corp's third-quarter 2023 revenue reached $14.8 billion, marking a 4.6 percent increase year-over-year. This growth was primarily driven by an 8 percent rise in software revenue and a 6 percent increase in consulting revenue. However, infrastructure revenue saw a decline of 2 percent.

Profit Margin

IBM reported a gross profit margin of 54.4 percent on a GAAP basis, which is an increase of 1.7 points from the previous year. On a non-GAAP basis, the gross profit margin was 55.5 percent, up by 1.6 points. The pre-tax income margin also saw significant improvement, reaching 12.7 percent on a GAAP basis and 15.6 percent on a non-GAAP basis.

Cash Flow

For the third quarter of 2023, International Business Machines Corp generated net cash from operating activities amounting to $3.1 billion, which is an increase of $1.2 billion year-over-year. The company's free cash flow for the quarter was $1.7 billion, up by $0.9 billion compared to the same period last year. IBM returned $1.5 billion to shareholders in dividends during this quarter.

Segment Performance

In the third quarter of 2023, IBM's software segment generated $6.3 billion in revenue, up 7.8 percent year-over-year. The consulting segment reported $5.0 billion in revenue, a 5.6 percent increase. However, the infrastructure segment saw a decline, with revenues falling by 2.4 percent to $3.3 billion.

Full-Year Outlook

International Business Machines Corp maintains its full-year 2023 revenue growth expectations at 3 to 5 percent in constant currency. The company also continues to project free cash flow of approximately $10.5 billion for the year, which would represent an increase of more than $1 billion year-over-year.