IBM 3Q 2017 Earnings

IBM announced its third quarter 2017 earnings this afternoon.

Highlights

• Diluted EPS from continuing operations: GAAP of $2.92; Operating (non-GAAP) of $3.30
• Revenue of $19.2 billion
• Strategic imperatives revenue of $34.9 billion over the trailing 12 months, up 10 percent; represents 45 percent of IBM revenue
  • Third-quarter revenue up 11 percent (up 10 percent adjusting for currency)
• Cloud revenue of $15.8 billion over the trailing 12 months, up 25 percent year to year (up 26 percent adjusting for currency)
  • As-a-service annual exit run rate of $9.4 billion in the quarter, up 25 percent year to year (up 24 percent adjusting for currency)
• Maintains full-year EPS and free cash flow expectations

“In the third quarter we achieved double-digit growth in our strategic imperatives, extended our enterprise cloud leadership, and expanded our cognitive solutions business,” said Ginni Rometty, IBM chairman, president and chief executive officer.  “There was enthusiastic adoption of IBM’s new z Systems mainframe, which delivers breakthrough security capabilities to our clients.”