IBM today announced second-quarter 2020 earnings results. See below highlights:
- GAAP EPS from continuing operations of $1.52
- Operating (non-GAAP) EPS of $2.18
- Revenue of $18.1 billion, down 5.4 percent (down 1.9 percent adjusting for divested businesses and currency)
-- Cloud & Cognitive Software revenue up 3 percent (up 5 percent adjusting for currency)
-- Systems revenue up 6 percent
- Total cloud revenue of $6.3 billion, up 30 percent (up 34 percent adjusting for divested businesses and currency)
-- Total cloud revenue of $23.5 billion over the last 12 months, up 20 percent (up 23 percent adjusting for divested businesses and currency)
- Red Hat revenue up 17 percent (up 18 percent adjusting for currency), normalized for historical comparability
- GAAP gross profit margin of 48 percent, up 100 basis points; Operating (non-GAAP) gross profit margin of 49 percent up 160 basis points
- Net cash from operating activities of $15.1 billion and free cash flow of $11.5 billion, over the last 12 months
James Kavanaugh, IBM senior vice president and chief financial officer said the following:
“Our prudent financial management in these turbulent times enabled us to expand our gross profit margin, generate strong free cash flow and improve our liquidity position". We have the financial flexibility to continue to invest in our business and return value to our shareholders through our dividend policy.”
The company’s shares rose 5% in after-hours trading.
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