ARMONK, N.Y. - 18 Apr 2017: Highlights
Diluted EPS from continuing operations: GAAP of $1.85; Operating (non-GAAP) of $2.38
Revenue from continuing operations of $18.2 billion
Strategic imperatives revenue of $7.8 billion in the quarter, up 12 percent (up 13 percent adjusting for currency)
Strategic imperatives revenue of $33.6 billion over the last 12 months represents 42 percent of IBM revenue
Cloud revenue of $14.6 billion over the last 12 months
-- Cloud as-a-Service annual exit run rate of $8.6 billion in the quarter, up 59 percent year to year (up 61 percent adjusting for currency)
Maintains full-year EPS and free cash flow expectations.
IBM (NYSE: IBM) today announced first-quarter earnings results.
"In the first quarter, both the IBM Cloud and our cognitive solutions again grew strongly, which fueled robust performance in our strategic imperatives," said Ginni Rometty, IBM chairman, president and chief executive officer. "In addition, we are developing and bringing to market emerging technologies such as blockchain and quantum, revolutionizing how enterprises will tackle complex business problems in the years ahead."
FIRST QUARTER 2017
Diluted EPS Net Income Gross Profit Margin
GAAP from Continuing Operations $1.85 $1.8B 42.8%
Year/Year -11% -13% -3.7Pts
Operating (Non-GAAP) $2.38 $2.3B 44.5%
Year/Year 1% -1% -3.0Pts
REVENUE Total IBM Strategic Imperatives Cloud
As reported (US$) $18.2B $7.8B $3.5B
Year/Year -3% 12% 33%
Year/Year adjusting for currency -2% 13% 35%
"We continued to make investments in the first quarter to expand our cognitive and cloud platform and we increased our research and development spending," said Martin Schroeter, IBM senior vice president and chief financial officer. "At the same time we returned more than $2.6 billion to shareholders through dividends and gross share repurchases."
Strategic Imperatives
First-quarter cloud revenues increased 33 percent (up 35 percent adjusting for currency) to $3.5 billion. Cloud revenue over the last 12 months was $14.6 billion. The annual exit run rate for cloud as-a-service revenue increased to $8.6 billion from $5.4 billion in the first quarter of 2016. Revenues from analytics increased 6 percent (up 7 percent adjusting for currency). Revenues from mobile increased 20 percent (up 22 percent adjusting for currency) and revenues from security increased 9 percent (up 10 percent adjusting for currency).
Full-Year 2017 Expectations
The company continues to expect operating (non-GAAP) diluted earnings per share of at least $13.80 and GAAP diluted earnings per share of at least $11.95. Operating (non-GAAP) diluted earnings per share exclude $1.85 per share of charges for amortization of purchased intangible assets, other acquisition-related charges and retirement-related charges. IBM continues to expect free cash flow to be relatively flat year to year.
Cash Flow and Balance Sheet
In the first quarter, the company generated net cash from operating activities of $4.0 billion, or $1.9 billion excluding Global Financing receivables. IBM's free cash flow was $1.1 billion, down year to year consistent with the amount of the Japan tax refund received in the first quarter of 2016. IBM returned $1.3 billion in dividends and $1.3 billion of gross share repurchases to shareholders. At the end of March 2017, IBM had $3.8 billion remaining in the current share repurchase authorization.
IBM ended the first quarter of 2017 with $10.7 billion of cash on hand. Debt, including Global Financing debt of $28.5 billion, totaled $42.8 billion. Core (non-Global Financing) debt totaled $14.3 billion. The balance sheet remains strong and is well positioned to support the business over the long term.
Segment Results for First Quarter
Cognitive Solutions (includes Solutions Software and Transaction Processing Software) -- revenues of $4.1 billion, up 2.1 percent (up 2.8 percent adjusting for currency) were driven by growth in analytics and security, which include Watson-related offerings.
Global Business Services (includes Consulting, Global Process Services and Application Management) -- revenues of $4.0 billion, down 3.0 percent (down 1.9 percent adjusting for currency). Strategic imperatives grew double digits led by the cloud and mobile practices.
Technology Services & Cloud Platforms (includes Infrastructure Services, Technical Support Services and Integration Software) -- revenues of $8.2 billion, down 2.5 percent (down 2.0 percent adjusting for currency) with strong growth in strategic imperatives driven by hybrid cloud services.
Systems (includes Systems Hardware and Operating Systems Software) -- revenues of $1.4 billion, down 16.8 percent (down 16.1 percent adjusting for currency).
Global Financing (includes financing and used equipment sales) -- revenues of $405 million, down 1.2 percent (down 2.1 percent adjusting for currency).
Tax Rate
For the first quarter, IBM's ongoing effective GAAP tax rate was approximately 12 percent. The ongoing effective operating (non-GAAP) tax rate was approximately 15 percent, which is within the expected range of 15 percent plus or minus 3 points provided earlier this year. IBM's reported tax rates include the effect from a discrete tax benefit disclosed earlier this year.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company's current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including
Most recent headlines
11/12/2025
Dalet, a leading provider of cloud-native, end-to-end media workflow solutions, ...
02/12/2025
Case Study: How Mid-Atlantic Sports Network Moved to All-IP Distribution in 60 D...
02/12/2025
2025 Sports Broadcasting Hall of Fame: Lee Corso, Coach, Commentator, FirebrandBy Ken Kerschbaumer
Tuesday, December 2, 2025 - 7:00 am
Print This Story | S...
02/12/2025
SVG All-Stars: Dan Nabors, Senior Director, Remote Engineering, TNT SportsThe veteran tech leader is helping guide Warner Bros. Discovery's at-home' re...
02/12/2025
National Lacrosse League Opens Season With New Cloud-Based Official Replay-Revie...
02/12/2025
Platinum White Paper: The Cinematic Look in Live Production - Bridging Aesthetic...
02/12/2025
SVG India Announces Advisory Board; JioStar's Prashant Khanna Named ChairmanBy Ken Kerschbaumer
Tuesday, December 2, 2025 - 11:15 am
Print This Story |...
02/12/2025
SVG Summit 2025 Preview: New AI Production Tools Workshop' Features ESPN, F...
02/12/2025
Written and directed by Hailey Gates, Atropia won the U.S. Grand Jury Prize: Dramatic at the 2025 Sundance Film Festival....
02/12/2025
The lightweight and highly portable CORVUS-RAVEN, recently demonstrated at the V...
02/12/2025
The lightweight, rugged Panther 2 tri-band VSAT delivers high-speed data communications for Internet, VPN connectivity and video transmission over commercial an...
02/12/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
02/12/2025
NGID volunteers in the United States
NGID volunteers in Mexico
NGID volunteers in India
NGID volunteers in Spain
NGID volunteers in Australia
NGID voluntee...
02/12/2025
WASHINGTON The Federal Communications Commission's Media Bureau has issued a reminder that stations in DMAs 111 through 120 must implement its audio descrip...
02/12/2025
SAN DIEGO Sony Electronics today introduced the Alpha 7 V (ILCE-7M5), the fifth generation of its Alpha 7 full-frame mirrorless lineup, powered by the newly dev...
02/12/2025
WASHINGTON The Federal Communications Commission has opened a docket for comments on Nexstar Media Group's proposed $6.2 billion acquisition of Tegna and se...
02/12/2025
WASHINGTON The National Association of Broadcasters has added a trio of media executives, Veronica Rodriguez, Matt Schnaars and Jeff Warshaw, to its board of di...
02/12/2025
MILAN, Italy Brightcove has released seven new features designed to expand global reach, improve audience engagement, enhance live-streaming quality and streaml...
02/12/2025
BCNEXXT, the developers of the advanced playout platform Vipe, today announced a new Service Provider Partner agreement with NPC Media, the Australian managed p...
02/12/2025
DPA Microphones today announces the immediate availability of its new N-Series Digital Wireless Microphone System for customers throughout the U.S. In addition ...
02/12/2025
Hiltron Communications reports a well attended and successful Space Tech Expo exhibition, held at the Messe Bremen from Tuesday November 18 through Thursday Nov...
02/12/2025
The beginning of September saw Riverfire by Australian Retirement Trust, in association with Channel 9 and Triple M, kick off the 2025 Brisbane Festival in spec...
02/12/2025
SGM Lighting is pleased to announce an exciting new partnership with ACT Entertainment, under which ACT will serve as the exclusive distributor for SGM's ne...
02/12/2025
Harmonic (NASDAQ: HLIT) today announced that Telia, the second largest telecom operator in Norway, is modernizing its broadband network with the company's i...
02/12/2025
European cloud data protection specialist Keepit is expanding its sales network in the DACH region and has gained TIM AG, one of the leading value-added distrib...
02/12/2025
Featured products at ISE 2026
This year s ISE 2026 theme "Push Beyond" reflects Calrec s direction of travel. The company is dedicated to supporting the AV an...
02/12/2025
Czech Television, the national public broadcaster, has deployed one of the largest LiveU live production projects in the region for live sports and news coverag...
02/12/2025
Test & measurement innovator, Leader Electronics, has announced the release of v8.2 software for its ZEN and ZEN-W Series, bringing advanced cinematic camera se...
02/12/2025
Global provider of video streaming software and services, Accedo, and OTT platform provider, Magine Pro, have signed a binding agreement to carve out and merge ...
02/12/2025
With proven success in broadcast, OTT, and content supply chains, K.S Avinash set to scale Skandha's service-first approach across APAC
Skandha Media Servi...
02/12/2025
AJA Video Systems has joined the RAVENNA community, a network of partners devoted to advancing the RAVENNA standard for distributing real-time audio over intern...
02/12/2025
HUNT VALLEY, Md. Sinclair and its wholly-owned subsidiary One Media Technologies have released a new report focused on how ATSC 3.0, the IP-based NextGen TV sta...
02/12/2025
WASHINGTON The Federal Communications Commission's Media Bureau has issued a reminder that stations in DMAs 111 through 120 must implement its audio descrip...
02/12/2025
WASHINGTON Members of the Advanced Television Systems Committee have elected four industry veterans to three-year terms on the organization's board of direc...
02/12/2025
A new survey from S&P Global Market Intelligence Kagan highlights how important social media is for younger consumers, with Gen Z spending 5.1 hours a day on so...
02/12/2025
Faculty Notes: Fall/Winter 2025 Recent accomplishments, releases, and events by Berklee faculty.
December 1, 2025
By
Editorial Staff
The cast of Kind of M...
02/12/2025
Ring In The Holidays With Our Biggest Sale Ever On Ivory II Pianos!From now until December 31st, you can save 50% or more on every Ivory II piano and collection...
02/12/2025
Back to All News
Made in America: How Stranger Things' Electrified the US Economy
Entertainment
02 December 2025
GlobalUnited States
Link copied to cl...
02/12/2025
Back to All News
Culinary Class Wars' Season 2 Trailer Teases New Rules, R...
02/12/2025
--
The International Electrotechnical Commission (IEC), the International Organization for Standardization (ISO), and the International Telecommunication Unio...
02/12/2025
Harmonic's cOS Platform Will Redefine Subscribers' Quality of Experience, Lowering Churn SAN JOSE, Calif. - Dec. 2, 2025 - Harmonic (NASDAQ: HLIT) today...
02/12/2025
At AWS re:Invent, NVIDIA and Amazon Web Services expanded their strategic collab...
02/12/2025
S an Nollaig
Hollywood blockbusters The Banshees of Inisherin, Barbie and Oppenheimer make their Irish TV debut
Tune into the classics such as Love Actual...
02/12/2025
Showcasing fresh Irish storytelling and emerging talent Storyland 2025 signals a fantastic time for Irish drama
RT and F s ireann/Screen Ireland are proud to...
01/12/2025
L3Harris and PentenAmio formalise their teaming agreement at MilCIS 2025, streng...
01/12/2025
Artemis II is NASA's first crewed flight test of the Space Launch System rocket and Orion spacecraft. The crew, from left: Commander Reid Wiseman, Pilot Vic...
01/12/2025
IRVINE, Calif. Wooden Camera has introduced its new Accessory Collection for the Canon EOS C50. The new lineup includes a low-profile, gimbal-ready cage, expand...
01/12/2025
WASHINGTON The Federal Communications Commission has released a tentative agenda for its Dec. 18 Open Commission Meeting that will include a vote on a report an...
01/12/2025
In most years, a graph of annual local TV ad spending is about as predictable as an electrocardiogram of a reasonably healthy patient in a doctor's office. ...
ARMONK, N.Y. - 18 Apr 2017: Highlights
