🔹 Revenue: $14.54B (Est: $14.41B) 🟢; UP +0.5% YoY
🔹 Operating EPS: $1.60 (Est: $1.42) 🟢; DOWN -5% YoY
🔹 Adj Gross Margin: 56.6% (Est: 55.6%) 🟢; UP +190 bps YoY
FY25 Guidance (Reaffirmed)
🔹 Revenue Growth (Constant Currency): At least +5% (Est: +4.78%) 🟢
🔹 Currency Tailwind: +1% to +1.5%
🔹 Free Cash Flow: ~$13.5B (Est: $13.72B) 🔴
Q2'25 Guidance
🔹 Revenue: $16.4B–$16.75B (Est: $16.28B) 🟢
Segment Performance
Software
🔹 Revenue: $6.34B (Est: $6.3B) 🟢; UP +7.4% YoY
🔹 Gross Margin: 83.6% (vs. 82.4% YoY)
🔸 Red Hat (Hybrid Cloud): UP +12% YoY
🔸 Automation: UP +14% YoY
🔸 Data: UP +5% YoY
🔸 Transaction Processing: FLAT YoY
Consulting
🔹 Revenue: $5.07B (Est: $5.07B) 🟡; DOWN -2.3% YoY
🔹 Gross Margin: 27.3% (vs. 25.3% YoY)
🔸 Strategy & Technology: DOWN -3% YoY
🔸 Intelligent Operations: DOWN -2% YoY
Infrastructure
🔹 Revenue: $2.89B (Est: $2.81B) 🟢; DOWN -6.2% YoY
🔹 Gross Margin: 52.8% (vs. 54.2% YoY)
🔸 Hybrid Infrastructure: DOWN -9% YoY
◾ IBM Z: DOWN -15% YoY
◾ Distributed: DOWN -5% YoY
🔸 Infrastructure Support: DOWN -3% YoY
Financing
🔹 Revenue: $191M (Est: $184M) 🟢; DOWN -1% YoY
🔹 Gross Margin: 45.8% (vs. 48.5% YoY)
Other
🔹 Revenue: $61M; DOWN -44% YoY
Profitability
🔹 GAAP Gross Margin: 55.2% (vs. 53.5% YoY); UP +170 bps
🔹 Operating Pre-tax Income Margin: 12.0% (vs. 11.5% YoY)
🔹 Opeting Net Income: $1.5B; DOWN -3% YoY
🔹 GAAP Net Income: $1.05B; DOWN -33% YoY
🔹 Free Cash Flow: $1.96B (Est: $1.79B) 🟢; UP +2.7% YoY
🔹 Net Cash from Operations: $4.37B; UP +5% YoY