INTERNATIONAL BUSINESS MACHINES CORP Quarterly Report for Q1 Ended Mar 31, 2018

Summary

For the first quarter ended March 31, 2018, International Business Machines Corp. (IBM) reported total revenue of $19.07 billion, a 5.1% increase year-over-year, or flat when adjusted for currency. Net income was $1.68 billion, a decrease of 4.1% compared to the prior year, resulting in diluted earnings per share of $1.81. The company continued its strategic shift, with 'strategic imperatives' revenue (cloud, analytics, mobile, security) increasing 15% and representing 47% of total revenue over the trailing twelve months. Key financial highlights include a strong operational cash flow of $4.6 billion. The company also maintained a robust liquidity position with $13.2 billion in cash, cash equivalents, and restricted cash. IBM announced a quarterly dividend of $1.57 per share, a 5% increase, indicating continued confidence in its financial performance and commitment to returning value to shareholders. The company reaffirmed its full-year 2018 guidance for GAAP earnings per share and operating (non-GAAP) earnings per share.

Key Highlights

• 1Total revenue increased 5.1% to $19.07 billion, with strategic imperatives revenue growing 15% year-over-year.
• 2Net income decreased 4.1% to $1.68 billion, resulting in diluted EPS of $1.81.
• 3Operating cash flow was strong at $4.6 billion, demonstrating healthy operational performance.
• 4The company maintained a strong liquidity position with $13.2 billion in cash, cash equivalents, and restricted cash.
• 5IBM announced a 5% increase in its quarterly dividend to $1.57 per share, signaling confidence and commitment to shareholder returns.
• 6Full-year 2018 guidance for GAAP EPS and operating (non-GAAP) EPS was reaffirmed.

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