Q3 Results Q/Q Comparison

  • Revenue was flat at $19.2B
  • GAAP Diluted EPS decreased 1% $2.98
    • GAAP Net Income decreased 4% to $2.9B
  • Non-GAAP Diluted EPS decreased 1% to $3.29
    • Non-GAAP Net Income decreased 4% to $3.1B
  • Non-GAAP gross profit margin was 48.0%, down 210 basis points
  • Business segments (constant-currency basis):
    • Cognitive Solutions (includes solutions software and transaction processing software): Revenue increased 4.5%
    • Global Business Services (includes consulting, global process services, application management): Revenue decreased 1.6%
    • Technology Services and Cloud Platforms (includes infrastructure services, technical support services, integration software): Revenue increased 1.4%
    • Systems (includes systems hardware and operating systems software): Revenue decreased 21.5%, due to Z System product cycle dynamics
    • Global Financing (includes financing and used equipment sales): Revenue decreased 9.2%
  • Ended quarter with $10.0B in cash on hand and generated $2.4B of free cashflow
  • Returned $2.2B 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: $155
Market Capitalization: $148 billion

October 17, 2016






Menu byMilonic