IBM reports third-quarter revenue of $17.1 billion, up 4.7% from a year earlier
In short
IBM reported third-quarter revenue of $17.1 billion, up 4.7% year on year and above the $16.83 billion estimate cited by CLS. Operating earnings per share were $2.95 against an estimate of $2.86, and free cash flow was about $3 billion. IBM kept its full-year outlook, Jiemian reported.
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IBM announced its third-quarter results on 21 October local time, Jiemian reported. The company's revenue for the quarter was $17.1 billion. CLS and 36Kr put the year-on-year increase at 4.7%, against an estimate of $16.83 billion. Jiemian's headline and text give the growth as 5%. [ 1 , 2 , 3 ]
36Kr, crediting CLS, reported operating earnings per share of $2.95, against $2.65 a year earlier and an estimate of $2.86. It gave free cash flow as $3.03 billion, up 28% year on year, against an estimate of $2.63 billion. [ 2 ]
Jiemian reported a GAAP gross margin of 56.8% for the quarter, down 50 basis points, and a non-GAAP operating gross margin of 58.5%, down 20 basis points. Net cash from operating activities was $4 billion and free cash flow was $3 billion. [ 3 ]
For the first nine months of the year, Jiemian said, net cash from operating activities was $11.8 billion, up $2.6 billion from a year earlier. Free cash flow was $7.8 billion, up $0.6 billion. [ 3 ]
Jiemian reported that IBM continues to expect full-year constant-currency revenue growth of 4% to 5%. It also expects full-year free cash flow to rise by more than $1 billion year on year. [ 3 ]
Why it matters
The documents show IBM's quarterly revenue, operating earnings per share and free cash flow all above the estimates CLS cited. The company kept its full-year forecast for constant-currency revenue growth and free cash flow. The documents give no further basis for wider significance.
Key facts
- IBM's third-quarter revenue was $17.1 billion, up 4.7% year on year, against an estimate of $16.83 billion. [ 1 , 2 ]
- Operating earnings per share were $2.95, against $2.65 a year earlier and an estimate of $2.86. [ 2 ]
- Free cash flow was $3.03 billion, up 28% year on year, against an estimate of $2.63 billion. [ 2 ]
- The GAAP gross margin was 56.8%, down 50 basis points; the non-GAAP operating gross margin was 58.5%, down 20 basis points. [ 3 ]
- For the first nine months, net cash from operating activities was $11.8 billion, up $2.6 billion, and free cash flow was $7.8 billion, up $0.6 billion. [ 3 ]
- IBM continues to expect full-year constant-currency revenue growth of 4% to 5% and full-year free cash flow up by more than $1 billion year on year. [ 3 ]
Confirmed by several sources
Still unclear
- Whether revenue growth was 4.7% or 5%. CLS and 36Kr give 4.7%, while Jiemian's headline and text say 5%; the documents do not explain the difference.
- Estimates for earnings per share and free cash flow. They appear only in the 36Kr summary, which credits CLS, so no other document supports them.