Q2 Results Q/Q Comparison

  • Revenue decreased 5% to $19.3B
  • GAAP Diluted EPS decreased 5% $2.48
    • GAAP Net Income decreased 7% to $2.3B
  • Non-GAAP Diluted EPS increased 1% to $2.97
    • Non-GAAP Net Income decreased 2% to $2.8B
  • Non-GAAP gross profit margin was 47.2%, down 180 basis points
  • Business segments (constant-currency basis):
    • Cognitive Solutions (includes solutions software and transaction processing software): Revenue decreased 1.4%
    • Global Business Services (includes consulting, global process services, application management): Revenue decreased 1.7%
    • Technology Services and Cloud Platforms (includes infrastructure services, technical support services, integration software): Revenue decreased 3.6%
    • Systems (includes systems hardware and operating systems software): Revenue decreased 9.6%, due to Z System product cycle dynamics
    • Global Financing (includes financing and used equipment sales): Revenue decreased 1.7%
  • Ended quarter with $12.3B in cash on hand and generated $2.6B of free cashflow
  • Returned $2.8B to shareholders (dividends of $1.4B and share repurchases of $1.4B)
  • Maintained full-year 2017 guidance: adjusted EPS of at least $13.80

Stock Price: $154
Market Capitalization: $142 billion

July 18, 2017






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