IBM Q2 revenue $20.2 billion, diluted GAAP EPS $2.61
Staff Writer |
IBM announced second-quarter 2016 earnings results. Diluted EPS was GAAP of $2.61 and operating (non-GAAP) $2.95. Revenue from continuing operations was $20.2 billion.
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Revenues from the company’s strategic imperatives - cloud, analytics and engagement - increased 12 percent year to year.
Cloud revenues (public, private and hybrid) for the quarter increased 30 percent. Cloud revenue over the trailing 12 months was $11.6 billion.
The annual run rate for cloud as-a-service revenue - a subset of total cloud revenue - increased to $6.7 billion from $4.5 billion in the second quarter of 2015. Revenues from analytics increased 5 percent (up 4 percent adjusting for currency). Revenues from mobile increased 43 percent and from security increased 18 percent.
The company continues to expect operating (non-GAAP) diluted earnings per share of at least $13.50. This excludes $1.27 per share of charges for amortization of purchased intangible assets, other acquisition-related charges and retirement-related charges. As a result, GAAP diluted earnings per share are now expected to be at least $12.23.
There is no change to IBM's previously provided free cash flow guidance. The company generated net cash from operating activities of $3.4 billion; or $3.1 billion excluding Global Financing receivables. IBM’s free cash flow was $2.1 billion in the second quarter.
IBM returned $1.3 billion in dividends and $0.8 billion of gross share repurchases to shareholders. At the end of June 2016, IBM had $3.9 billion remaining in the current share repurchase authorization.
IBM ended the second-quarter 2016 with $10.6 billion of cash on hand. Debt, including Global Financing debt of $26.5 billion, totaled $44.5 billion. Core (non-global financing) debt totaled $18.0 billion. The balance sheet remains strong and is well positioned to support the business over the long term. ■