Q1 Results Q/Q Comparison

  • Revenue decreased 3% to $18.2B
  • GAAP Diluted EPS decreased 11% $1.85
    • GAAP Net Income decreased 13% to $1.8B
  • Non-GAAP Diluted EPS increased 1% to $2.38
    • Non-GAAP Net Income decreased 1% to $2.3B
  • Non-GAAP gross profit margin was 44.5%, down 300 basis points
  • Business segments (constant-currency basis):
    • Cognitive Solutions (includes solutions software and transaction processing software): Revenue increased 2.8%
    • Global Business Services (includes consulting, global process services, application management): Revenue decreased 1.9%
    • Technology Services and Cloud Platforms (includes infrastructure services, technical support services, integration software): Revenue decreased 2.0%
    • Systems (includes systems hardware and operating systems software): Revenue decreased 16.8%, due to Z System product cycle dynamics
    • Global Financing (includes financing and used equipment sales): Revenue decreased 2.1%
  • Ended quarter with $10.7B in cash on hand and generated $1.1B of free cashflow
  • Returned $2.6B to shareholders (dividends of $1.3B and share repurchases of $1.3B)
  • Maintained full-year 2017 guidance: adjusted EPS of at least $13.80

Stock Price: $170
Market Capitalization: $162 billion

April 18, 2017






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