Q2 Results Q/Q Comparison

  • Revenue decreased 3% to $20.2B
  • GAAP Diluted EPS decreased 27% $2.61
    • GAAP Net Income decreased 29% to $2.5B
  • Non-GAAP Diluted EPS decreased 23% to $2.95
    • Non-GAAP Net Income decreased 25% to $2.8B
  • Non-GAAP gross profit margin was 49.0%, down 190 basis points
  • Business segments (constant-currency basis):
    • Cognitive Solutions (includes solutions software and transaction processing software): Revenue increased 3.8%
    • Global Business Services (includes consulting, global process services, application management): Revenue decreased 2.5%
    • Technology Services and Cloud Platforms (includes infrastructure services, technical support services, integration software): Revenue was flat
    • Systems (includes systems hardware and operating systems software): Revenue decreased 23.3%, due to Z System product cycle dynamics
    • Global Financing (includes financing and used equipment sales): Revenue decreased 10%
  • Ended quarter with $10.6B in cash on hand and generated $2.1B of free cashflow
  • Returned $2.1B to shareholders (dividends of $1.3B and share repurchases of $0.8B)
  • Maintained full-year 2016 guidance: adjusted EPS of at least $13.50

Stock Price: $160
Market Capitalization: $153 billion

July 18, 2016






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