Shares of IBM Common Stock
By The Numbers: The Armonk, New York-based company issued earnings of $2.18 per share, ahead of the $2.01 Street estimate, on revenues of $15.47 billion, which missed the $15.57 billion consensus estimate, according to Benzinga Pro.
"Organizations are using our hybrid cloud and AI technology, and our consulting capabilities, to transform their operations," said Arvind Krishna, IBM chairman and CEO.
"We continue to respond to the needs of our clients who seek trusted, enterprise AI solutions, and we are particularly excited about the response to the recently launched watsonx AI platform. Finally, we remain confident in our revenue and free cash flow growth expectations for the full year."
The company said year to date net cash from operating activities is $6.4 billion, up $1.8 billion, and has a free cash flow of $3.4 billion, up $100 million.
IBM said it sees full-year 2023 free cash flow at $10.5 billion.
"In the quarter, revenue performance was led by our growth vectors of software and consulting, and we continued to expand our gross profit margin, driven by our improving portfolio mix and productivity initiatives," James Kavanaugh, IBM senior vice president and CFO said in a statement.
"This year we have leveraged our strong cash position to invest for growth, announcing seven acquisitions to bolster our hybrid cloud and AI strategy, while continuing to return value to shareholders through dividends."
IBM ended the second quarter with $16.3 billion of cash and marketable securities, up $7.5 billion from year-end 2022. Debt, including IBM Financing debt of $10.6 billion, totaled $57.5 billion, up $6.5 billion since the end of 2022.
IBM Price action: Shares of IBM traded 0.89% higher to $135.48 at market close, according to Benzinga Pro. After-hours trading has the shares down 0.87% at $134.30.
