Financial Performance - For the quarter ended March 2025, IBM reported revenue of $14.54 billion, reflecting a 0.6% increase year-over-year and a surprise of +0.66% over the Zacks Consensus Estimate of $14.45 billion [1] - Earnings per share (EPS) for the quarter was $1.60, down from $1.68 in the same quarter last year, with an EPS surprise of +12.68% compared to the consensus estimate of $1.42 [1] Segment Performance - Consulting revenue was $5.07 billion, slightly below the average estimate of $5.09 billion, representing a -2.3% change year-over-year [4] - Infrastructure revenue reached $2.89 billion, exceeding the estimate of $2.83 billion, but showing a -6.2% decline compared to the previous year [4] - Software revenue was $6.34 billion, surpassing the estimate of $6.31 billion, with a +7.4% increase year-over-year [4] - Other revenue was $61 million, significantly below the estimate of $78.46 million, marking a -43.5% change year-over-year [4] - Transaction Processing revenue was $1.80 billion, slightly below the estimate of $1.88 billion, with no change year-over-year [4] - Infrastructure Support revenue was $1.20 billion, just under the estimate of $1.21 billion, reflecting a -7.7% change year-over-year [4] - Hybrid Infrastructure revenue was $1.60 billion, below the estimate of $1.64 billion, indicating an -11.1% decline year-over-year [4] Profitability Metrics - Segment Profit for Software was $1.85 billion, exceeding the estimate of $1.51 billion [4] - Segment Profit for Financing was $69 million, below the average estimate of $84.84 million [4] - Segment Profit for Infrastructure was $248 million, under the estimate of $282.23 million [4] - Segment Profit for Consulting was $558 million, significantly above the estimate of $388.71 million [4] Stock Performance - IBM shares have returned -3.6% over the past month, compared to the Zacks S&P 500 composite's -6.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - IBM faced cancellations of 15 federal contracts due to cuts from the Department of Government Efficiency (DOGE), resulting in a loss of $100 million in future payments [1][2] - Federal contracts account for approximately 5% to just under 10% of IBM's consulting practice [1] - IBM's consulting business represented 34% of the company's revenue in Q1, with consulting revenue slightly over $5 billion, down 2% overall [3][4] Impact of Cancellations - CEO Arvind Krishna and CFO James Kavanaugh downplayed the potential impact of DOGE cuts on future business, emphasizing that the cancellations represent a small fraction of the company's annualized backlog of over $30 billion in consulting [2][3] - Kavanaugh noted that the $100 million backlog loss is spread over multiple years, indicating a manageable impact on the overall business [3] Nature of Federal Contracts - The majority of IBM's federal government consulting contracts involve critical work, such as processing veterans' benefit claims and implementing payroll systems, which are deemed essential rather than discretionary [4] - Krishna highlighted that only a minority of the business could be viewed as discretionary, reinforcing the importance of the remaining contracts [4] Business Outlook - Krishna expressed confidence in the company's diverse portfolio and execution track record, suggesting that IBM is well-positioned to navigate the current climate and looks forward to progress in the upcoming year [5]

Group 1 - IBM experienced cancellations of 15 federal contracts due to cuts from the Department of Government Efficiency (DOGE), resulting in a loss of $100 million in future payments [1][2] - Federal contracts account for approximately 5% to just under 10% of IBM's consulting practice, which made up 34% of the company's revenue in Q1 [1][3] - The consulting revenue for IBM in Q1 was slightly over $5 billion, reflecting a 2% decline overall [4] Group 2 - IBM's CEO and CFO downplayed the potential impact of DOGE on future business, emphasizing that the cancelled contracts represent a small portion of their annualized backlog of over $30 billion [2][3] - The majority of IBM's federal government consulting contracts are focused on critical work, such as processing veterans benefit claims and implementing payroll systems, with only a minority being discretionary [4] - The diversity of IBM's business portfolio is seen as a strength in navigating the current economic climate, with confidence in future growth [5]

IBM (IBM) came out with quarterly earnings of $1.60 per share, beating the Zacks Consensus Estimate of $1.42 per share. This compares to earnings of $1.68 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 12.68%. A quarter ago, it was expected that this technology and consulting company would post earnings of $3.73 per share when it actually produced earnings of $3.92, delivering a surprise of 5.09%. There are no easy answers t ...

IBM(IBM.N)：宏观经济环境不稳定；维持全年收入增长和自由现金流预期不变。 ...

Exhibit 99.1 IBM RELEASES FIRST-QUARTER RESULTS Results exceed expectations driven by strong Software revenue growth, significant gross margin expansion and solid free cash flow ARMONK, N.Y., April 23, 2025 . . . IBM (NYSE: IBM) today announced first-quarter 2025 earnings results. "We exceeded expectations for revenue, profitability and free cash flow in the quarter, led by strength across our Software portfolio. There continues to be strong demand for generative AI and our book of business stands at more t ...

Core Viewpoint - IBM reported better-than-expected earnings and revenue for the first quarter, but the stock slipped 4% in extended trading [1] Financial Performance - Revenue increased by 0.6% to $14.5 billion compared to $14.4 billion a year earlier [1][7] - Net income decreased to $1.06 billion, or $1.12 per share, down from $1.61 billion, or $1.72 per share, in the same quarter a year ago [1] Future Guidance - For 2025, IBM expects $13.5 billion in free cash flow and 5% revenue growth at constant currency [2] - Management forecasts second-quarter revenue between $16.4 billion and $16.75 billion, with a midpoint of $16.58 billion, exceeding the LSEG consensus of $16.33 billion [2] Segment Performance - Software revenue rose 7% to $6.34 billion, aligning with analyst consensus [3] - Consulting unit revenue was $5.07 billion, down 2%, slightly above the consensus of $5.05 billion [4] - Infrastructure division revenue declined by 6% to $2.89 billion, surpassing the $2.76 billion consensus [4] Strategic Moves - IBM settled lawsuits with GlobalFoundries and completed a $6.4 billion acquisition of HashiCorp, with plans to acquire DataStax for undisclosed terms [5] Market Context - IBM shares increased by 11% this year, contrasting with a nearly 14% decline in the Nasdaq [6]

Core Insights - IBM reported first-quarter 2025 earnings results that exceeded expectations, driven by strong growth in Software revenue, significant gross margin expansion, and solid free cash flow [1][2][6] Financial Performance - Revenue for the first quarter was $14.5 billion, representing a 1% increase year-over-year, and a 2% increase at constant currency [11] - Gross profit margin improved to 55.2%, up 170 basis points year-over-year, while operating (non-GAAP) gross profit margin reached 56.6%, up 190 basis points [11][19] - Net income from continuing operations was $1.1 billion, down from $1.6 billion in the previous year, with diluted earnings per share of $1.12 [11][21] Revenue Breakdown - Software revenue was $6.3 billion, up 7% year-over-year, with notable growth in Hybrid Cloud (up 12%) and Automation (up 14%) [12][19] - Consulting revenue decreased by 2% to $5.1 billion, while Infrastructure revenue fell by 6% to $2.9 billion [12][19] - Financing revenue was $0.2 billion, down 1% year-over-year [12] Cash Flow and Investments - The company generated net cash from operating activities of $4.4 billion, an increase of $0.2 billion year-over-year, with free cash flow of $2.0 billion, up $0.1 billion [8][11] - IBM returned $1.5 billion to shareholders in dividends and invested $7.1 billion in acquisitions, including HashiCorp [8][9] Balance Sheet Highlights - As of March 31, 2025, IBM had $17.6 billion in cash, restricted cash, and marketable securities, an increase of $2.8 billion from the end of 2024 [9][22] - Total debt, including IBM Financing debt, was $63.3 billion, up $8.3 billion year-to-date [9][22] Future Expectations - The company maintains its full-year expectations for revenue growth and free cash flow, projecting at least 5% constant currency revenue growth for the year [2][13]

Core Insights - IBM presents a stable investment opportunity in contrast to newer tech companies, with a 33% increase in stock value over the past year [2][3] - The company is well-positioned in high-growth sectors such as hybrid cloud and artificial intelligence, indicating potential undervaluation by the market [3][14] Financial Performance - IBM's market capitalization is approximately $222.4 billion, and it has a consistent history of dividend increases for 29 years, making it a Dividend Aristocrat [4] - The current annual dividend is $6.68 per share, yielding about 2.78%, with $6.1 billion returned to shareholders in FY2024 [5] - Free cash flow grew to $12.7 billion in FY2024, a $1.5 billion increase from the previous year, and the company has a beta of 0.67, indicating lower volatility [5] Strategic Developments - Software and Consulting now account for about 75% of IBM's revenue, with hybrid cloud being a central focus [6] - The acquisition of HashiCorp for $6.4 billion enhances IBM's cloud automation capabilities, and further acquisitions are planned to expand its hybrid cloud and data solutions [8] - The Software division achieved a 9.0% growth at constant currency, with significant contributions from Transaction Processing and the new Automation category [9] Market Sentiment and Analyst Ratings - Despite strong performance, IBM has a Hold consensus rating among analysts, with an average price target of $232.75, suggesting limited upward movement from its current price [11] - Analysts have mixed views, with some recommending a Hold or Sell, while others see significant future potential with high-end price targets ranging from $275 to $320 [11] Upcoming Events - The Q1 2025 earnings report on April 23rd is anticipated to provide insights into IBM's strategic progress, particularly in new Software segments [13] - Historical data indicates a 60% likelihood of a positive one-day return following earnings announcements, which could influence market perception [13]

Group 1 - IBM is set to release its first-quarter earnings results on April 22, with expected earnings of $1.43 per share, a decrease from $1.68 per share in the same period last year [1] - The projected quarterly revenue for IBM is $14.39 billion, slightly down from $14.46 billion a year earlier [1] - IBM recently launched its new mainframe, the IBM z17, which incorporates advanced artificial intelligence features to improve large-scale business operations [2] Group 2 - Analyst ratings for IBM show a mix of opinions, with Jefferies maintaining a Hold rating and lowering the price target from $270 to $265 [8] - JP Morgan has a Neutral rating and raised the price target from $233 to $244 [8] - B of A Securities maintains a Buy rating and increased the price target from $260 to $270 [8] - BMO Capital has a Market Perform rating and raised the price target from $260 to $280 [8] - UBS holds a Sell rating and increased the price target from $150 to $160 [8]