“IBM’s third-quarter performance, led by continued double-digit growth in our strategic imperatives, is a testament to our leadership in cognitive solutions and cloud,” said Ginni Rometty, IBM chairman, president and chief executive officer. “Our ability to apply deep expertise and breakthrough technology, led by Watson and the IBM Cloud, to massive amounts of data is enabling us to build new markets and transform industries. Whether it is banks implementing IBM blockchain solutions, hospitals leveraging Watson to fight cancer, or retailers using cognitive apps built on the IBM Cloud to transform the customer experience, clients across all industries are tapping into a new kind of innovation value from IBM.”
Highlights of the Report Include:
- Diluted EPS: GAAP of $2.98; Operating (non-GAAP) of $3.29
- Revenue from continuing operations of $19.2 billion
- Strategic imperatives revenue of $31.8 billion over the last 12 months represents 40 percent of IBM revenue- Strategic imperatives revenue of $8.0 billion in the quarter, up 16 percent year to year (up 15 percent adjusting for currency)
- Cloud revenue of $12.7 billion over the last 12 months- Cloud as-a-Service annual run rate of $7.5 billion in the quarter, up 66 percent year to year (up 65 percent adjusting for currency)
|THIRD QUARTER 2016|
|Diluted EPS||Net Income||Margin|
|GAAP from Continuing Operations||$2.98||$2.9B||46.9%|
|As reported (US$)||$19.2B||$8.0B||$3.4B|
|Year/Year adjusting for currency||-1%||15%||42%|
Within the detailed report, third-quarter revenues from IBM’s cloud, analytics, mobility and security initiatives showed a 16 percent increase year to year, with public, private and hybrid cloud revenues for the quarter increased a mega 44 percent. The report details growth in other cloud sectors, including cloud as-a-Service revenue to have increased to $7.5 billion from $4.5 billion in the third quarter of 2015. Additionally, revenues from mobile increased 19 percent and revenues from security increased 11 percent.
IBM Senior VP and CFO Martin Schroeter, explains how IBM strive to create new opportunities and maintain leadership within enterprise tech.
“Throughout the year, we have continued to invest where we see the greatest opportunities to create new markets and strengthen our enterprise IT leadership position. This has included more than $12 billion across capital expenditures, R&D and acquisitions so far this year. At the same time, we have returned more than $6 billion to shareholders through dividends and share repurchases.”