Summary
IBM's Q3 2017 filing shows a slight decrease in overall revenue, down 0.4% year-over-year to $19.15 billion. This was driven by declines in Global Business Services and Technology Services & Cloud Platforms, partially offset by growth in Cognitive Solutions and Systems, notably the new z14 mainframe. Despite the revenue dip, strategic imperatives (cloud, analytics, mobile, security, social) showed strength, growing 11% and comprising a larger portion of the business. Net income from continuing operations declined by 4.5% to $2.73 billion, resulting in diluted EPS of $2.92. The company continues to invest in cloud and cognitive capabilities, which are key drivers for future growth. IBM also repurchased $0.9 billion of its stock and paid $1.5 billion in dividends during the quarter, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
51 data points| Revenue | $19.15B |
| Cost of Revenue | $10.17B |
| Gross Profit | $8.98B |
| R&D Expenses | $1.29B |
| SG&A Expenses | $4.61B |
| Operating Income | $6.81B |
| Interest Expense | $168.00M |
| Net Income | $2.73B |
| EPS (Basic) | $2.93 |
| EPS (Diluted) | $2.92 |
| Shares Outstanding (Basic) | 929.44M |
| Shares Outstanding (Diluted) | 933.23M |
Key Highlights
- 1Total revenue for the third quarter of 2017 was $19.15 billion, a slight decrease of 0.4% year-over-year.
- 2Net income from continuing operations was $2.73 billion, a decrease of 4.5% compared to the prior year.
- 3Diluted earnings per share (EPS) from continuing operations were $2.92, down 2.0% year-over-year.
- 4Revenue from strategic imperatives (cloud, analytics, mobile, security, social) grew 11% year-over-year, reaching $8.8 billion.
- 5The new z14 mainframe launch contributed to a 10.4% increase in Systems revenue.
- 6IBM returned $2.3 billion to shareholders through dividends ($1.5 billion) and gross common stock repurchases ($0.9 billion).
- 7Cash flow from operations for the nine months ended September 30, 2017, was $11.0 billion.