🔹 Revenue: $16.98B (Est. $16.59B) 🟢; UP +8% YoY
🔹 Operating EPS (Non-GAAP): $2.80 (Est. $2.62) 🟢; UP +15% YoY
🔹 GAAP EPS: $2.31 (Est. $2.65) 🔴; UP +18% YoY
Guidance:
🔹 FY25 Free Cash Flow: Expected > $13.5B (Prior: ~$13.5B; Est. $13.56B) 🟢
🔹 FY25 Constant Currency Revenue Growth: At least 5%
🔹 Dividend: $1.68/share, payable Sep 10, 2025
Q2 Software:
🔹 Revenue: $7.39B (Est. $7.49B) 🔴; UP +10% YoY
🔹 Hybrid Cloud (Red Hat): UP +16% YoY
🔹 Automation: UP +16% YoY
🔹 Data: UP +9% YoY
🔹 Transaction Processing: UP +1% YoY
Q2 Consulting:
🔹 Revenue: $5.3B; UP +3% YoY
🔹 Strategy & Technology: UP +1% YoY
🔹 Intelligent Operations: UP +5% YoY
Infrastructure:
🔹 Revenue: $4.1B; UP +14% YoY
🔹 Hybrid Infrastructure: UP +21% YoY
◦ IBM Z: UP +70% YoY
◦ Distributed Infrastructure: DOWN -15% YoY
🔹 Infrastructure Support: DOWN -1% YoY
Financing:
🔹 Revenue: $0.2B; DOWN -2% YoY
Balance Sheet / Capital Returns:
🔹 Net Income (GAAP): $2.2B; UP +20% YoY
🔹 Gross Margin (Non-GAAP): 60.1%; UP +230 bps YoY
🔹 Pre-tax Income Margin (Non-GAAP): 18.8%; UP +110 bps YoY
🔹 Free Cash Flow: $2.8B; UP +$0.2B YoY
🔹 Cash & Marketable Securities: $15.5B
🔹 Total Debt: $64.2B (incl. $11.7B IBM Financing)
🔹 Q2 Dividend Return to Shareholders: $1.6B
CEO Arvind Krishna Commentary:
🔸 “We once again exceeded expectations for revenue, profit and free cash flow in the quarter.”
🔸 “Our generative AI book of business now stands at more than $7.5 billion.”
🔸 “With our strong first-half performance, we are raising our full-year outlook for free cash flow.”
CFO James Kavanaugh Commentary:
🔸 “Revenue growth, portfolio mix, and productivity initiatives drove significant margin expansion and double-digit profit growth.”
🔸 “This delivered solid free cash flow, fueling our ability to invest and return value to shareholders.”
