IBM shares rose more than 5% in extended trading on Monday after the company reported second-quarter earnings that were better than analysts had expected. We'll assume you're ok with this, but you can opt-out if you wish. In April IBM withdrew its guidance for the full year because of the pandemic. We also use third-party cookies that help us analyze and understand how you use this website. Revenue from IBM’s Global Technology Services category totaled $6.32 billion, down almost 8% year over year and above the FactSet consensus of $6.24 billion.

The Global Business Services unit had $3.89 billion in revenue, which was down 7% and slightly higher than the $3.87 billion consensus. WATCH: Concern is growing over police use of facial recognition, (adsbygoogle = window.adsbygoogle || []).push({}); “Our clients see the value of IBM’s hybrid cloud platform, based on open technol (1) Represents GAAP revenue as reported by IBM, which is included in the Cloud & Cognitive Software segment. Stock futures little changed as traders monitor stimulus talks, FDA approves remdesivir as global COVID-19 total tops 41 million, Chinese fintech giant Lufax seeks up to $2.36 billion in U.S. IPO, How the coronavirus crisis is hitting young people so hard, Tackling food insecurity in the U.S. as hunger grows due to COVID-19 pandemic, FDA approves first COVID-19 drug: antiviral remdesivir. 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John Bukovinsky, 732‑618‑3531 However, the company improved gross margins in three of its five units, partly thanks to job cuts. Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts). But Repos, Swaps, SPVs Mothballed, Vertex: Recent Clinical Setback Underscores The Need To Expand The Pipeline (NASDAQ:VRTX), Markets report: Funding round sees Shaftesbury dive, Efforts to ensure export control law implementation, Radiation ‘Sniffer’ Helicopter Takes Flight Above Washington, DC, Trust and compliance with public health policies in the time of COVID-19. These cookies will be stored in your browser only with your consent. It is mandatory to procure user consent prior to running these cookies on your website. Any forward-looking statement in this release speaks only as of the date on which it is made. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. The company’s net income, which came out to $1.36 billion, was down 46%. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Highlights for the second quarter include: Results Reflect the Impact of Items Related to, the Red Hat Acquisition Closed in July 2019, “Our prudent financial management in these turbulent times enabled us to expand our gross profit margin, generate strong free cash flow and improve our liquidity position," said James Kavanaugh, IBM senior vice president and chief financial officer. "We have the financial flexibility to continue to invest in our business and return value to our shareholders through our dividend policy.”. Presentation charts will be available shortly before the Webcast. In the quarter IBM announced cloud business from Movius and Prysmian Group, and it told the News & Observer newspaper in North Carolina that it was cutting a number of employees. IBM ended the second quarter with $14.3 billion of cash on hand which includes marketable securities, up $5.2 billion from year-end 2019. This line represents revenue that would have been recognized by Red Hat under GAAP if the acquisition had not occurred, but was not recognized by IBM due to purchase accounting and intercompany adjustments. jbuko@us.ibm.com, https://www.ibm.com/investor/events/ibm-2q-2020-earnings-announcement, GAAP EPS from continuing operations of $1.52, Revenue of $18.1 billion, down 5.4 percent (down 1.9 percent adjusting for divested businesses and currency), Total cloud revenue of $6.3 billion, up 30 percent (up 34 percent adjusting for divested businesses and currency), Red Hat revenue up 17 percent (up 18 percent adjusting for currency), normalized for historical comparability, GAAP gross profit margin of 48 percent, up 100 basis points; Operating (non-GAAP) gross profit margin of 49 percent up 160 basis points, Net cash from operating activities of $15.1 billion and free cash flow of $11.5 billion, over the last 12 months. The company returned $1.5 billion to shareholders in dividends. (2) Revenue for the three months ended June 30, 2019 represents pre-acquisition Red Hat standalone revenue and is included for comparative purposes. The Q3 earnings report will be published on Monday, October 19, 2020. Brian Ach | Getty Images. And Arvind Krishna started his job as IBM’s CEO on April 6.

Slower business in certain industries because of Covid-19 hurt the segment. IBM’s Cloud and Cognitive Software segment, which includes Red Hat, produced $5.75 billion in revenue. Accelerated Cloud Revenue Growth; Gross Margin Expansion; Strong Balance Sheet and Liquidity Position. In the quarter IBM announced cloud business from Movius and Prysmian Group, and it told the News & Observer newspaper in North Carolina that it was cutting a number of employees. And Arvind Krishna started his job as IBM’s CEO on April 6. Revenues for the six-month period ended June 30, 2020 totaled $35.7 billion, a decrease of 4 percent year to year (down 1 percent adjusting for divested businesses and currency) compared with $37.3 billion for the first six months of 2019. In April IBM withdrew its guidance for the full year because of the pandemic. Coronaviruses Are a Large Family of Viruses. IBM shares rose more than 6% in extended trading on Monday after the company reported second-quarter earnings that were better than analysts had expected. IBM did not update its full-year guidance. Constant Covid cleaning carries its own dangers, A patchwork of red, yellow and green – A second wave of covid-19 sends much of Europe back into lockdown | Europe, Taiwan Semiconductor Manufacturing Company Could Still Be Heading For A Correction (NYSE:TSM), Russian Destroyers Are Escorting Iranian Tankers In Mediterranean Amid US-UK Threats, In Anhui, GDP up over first three quarters, Major airline groups push for end to coronavirus quarantines, travel bans, Oil Production Cuts Could Be Extended: Putin, Barclays recovers as bad debt charges fall, Revised Data Show Initial Claims Plateauing, Beskæftigelsen er faldet i næsten hele EU, ‘It was carnage’: Nigeria reels from bullets and brutality of protest crackdown, China’s Hainan sees GDP rise 1.1% in Jan-Sept period, A Warning Concerning the Financial Condition of US Cities, Turkey Vows National Troops To Help Azerbaijan If Requested, Global stocks hold tight ranges as U.S. election caution sets in, PE firms seek to lure yield-hungry investors with risky PIK deals, In need of a new edifice – Chile’s momentous referendum on its constitution | The Americas, Regis Resources Ltd (RGRNF) CEO Jim Beyer on Q1 2021 Results – Earnings Call Transcript, Facebook Takes Aim At Nextdoor With New “Neighborhoods” Feature, US slaps sanctions on Iran’s envoy to Iraq, citing links to Quds Force & militia groups, The final Trump-Biden debate: five key moments, Blockbuster Report Reveals How Biden Family Was Compromised By China, California drivers sue Uber over in-app messages asking to support ballot measure, How Africa fought the pandemic — and what coronavirus has taught the world, 149 Years Of Higher Returns For Lower Risk, Denmark’s #MeToo moment as women open up on harassment, Walmart sues federal government over opioid case, Hermès and Kering add to signs of luxury goods recovery, Russophrenia… Or How A Collapsing Country Runs The World, Free exchange – Can too many brainy people be a dangerous thing?