Summary
International Business Machines Corp. (IBM) reported its first-quarter 2017 financial results, showing a slight decrease in total revenue to $18.2 billion from $18.7 billion in the prior year, impacted by currency fluctuations. Net income from continuing operations declined by 13.1% to $1.75 billion, translating to diluted earnings per share of $1.85. Despite the top-line and net income dip, IBM highlighted strong performance in its strategic imperatives—cloud, analytics, mobile, social, and security—which now represent 43% of total revenue, growing 12% year-over-year. Cloud revenue, in particular, saw significant growth, with as-a-Service revenue up 59%. The company generated $4.0 billion in cash from operations, though this was lower than the prior year due to a significant tax refund received in Q1 2016. IBM continued its commitment to shareholder returns, repurchasing $1.3 billion in stock and paying $1.3 billion in dividends.
Financial Highlights
51 data points| Revenue | $18.16B |
| Cost of Revenue | $10.21B |
| Gross Profit | $7.94B |
| R&D Expenses | $1.48B |
| SG&A Expenses | $5.03B |
| Operating Income | $1.75B |
| Interest Expense | $135.00M |
| Net Income | $1.75B |
| EPS (Basic) | $1.86 |
| EPS (Diluted) | $1.85 |
| Shares Outstanding (Basic) | 942.44M |
| Shares Outstanding (Diluted) | 947.84M |
Key Highlights
- 1Total revenue decreased 2.8% to $18.2 billion, or 2.2% adjusted for currency, compared to Q1 2016.
- 2Net income from continuing operations declined 13.1% to $1.75 billion, with diluted EPS of $1.85.
- 3Strategic imperatives (cloud, analytics, mobile, social, security) revenue grew 12% to $7.8 billion, representing 43% of total revenue.
- 4Cloud revenue increased 33% to $3.5 billion, with cloud as-a-Service revenue up 59%.
- 5Cash from operating activities was $4.0 billion, a decrease from $5.5 billion in Q1 2016, largely due to a prior year tax refund.
- 6IBM returned $2.6 billion to shareholders through dividends ($1.3 billion) and share repurchases ($1.3 billion).