IBM Maintains FY Revenue Forecast: International Business Machines Earnings Snapshot

• IBM maintained its FY revenue at the constant currency forecast, expecting an increase of 3-5%.
• The company sees free cash flow at around $10.5 billion.
• In the second quarter, revenue was $15.48 billion, down 0.4% year-on-year.
• Software revenue was $6.61 billion, up 7.2% year-on-year.
• Consulting segment revenue was $5.01 billion, up 4.2% year-on-year.
• Infrastructure revenue was $3.62 billion, down 15% year-on-year.
• Financing revenue was $185 million, up 27% year-on-year.
• Adjusted gross margin was 55.9%, compared to 54.5% year-on-year.
• Operating EPS was $2.18, compared to $2.31 year-on-year.
• Free cash flow was $2.10 billion, up 0.5% year-on-year.
• CEO Arvind Krishna said the company is excited about the response to the recently launched Watsonx AI platform.
• CFO James Kavanaugh said the revenue performance was led by software and consulting growth.

A look at International Business Machines Smart Scores

International Business Machines Corporation (IBM) has long been a leader in providing computer solutions through advanced information technology. According to Smartkarma Smart Scores, IBM has high scores in Dividend and Momentum, indicating that it is well-positioned in the long-term to continue to provide a strong dividend to shareholders and to maintain its momentum in the industry. However, its scores for Value, Growth, and Resilience are lower, suggesting that IBM may need to take steps to improve its prospects in these areas.

IBM has been providing computer solutions through advanced information technology for many years, and its products are sold through a global sales and distribution organization, as well as third-party distributors and resellers. With its high scores in Dividend and Momentum, IBM looks to be in a strong position in the long-term to continue to provide a strong dividend to shareholders and to maintain its momentum in the industry. However, its scores for Value, Growth, and Resilience are lower, suggesting that IBM may need to take steps to improve its prospects in these areas if it is to remain competitive in the future.

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