IBM Q2 2020 Earnings Report — International Business Machines Corporation Revenue & Financial Results | Market Cap Arena

International Business Machines CorporationIBM

Q2 2020 Earnings

Reported July 28, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2020	Q1 2020	Q2 2019	QoQ Change	YoY Change
Revenue	$18.1B	$17.6B	$19.2B	3.1%	-5.4%
Op. Income	$2.2B	$1.2B	$2.4B	86.2%	-6.7%
Gross Margin	48.0%	45.1%	47.0%	2.9pp	1.0pp
Net Margin	7.5%	6.7%	13.0%	0.8pp	-5.5pp
EPS (Diluted)	$1.52	$1.31	$2.81	16.0%	-45.9%
Free Cash Flow	$2.8B	$3.7B	$2.2B	-23.0%	28.7%

Revenue Flow

Item	Amount
REVENUE	$18.1B
Cost of Revenue	$9.4B
GROSS PROFIT	$8.7B
R&D Expenses	$1.6B
Selling & Marketing	$363M
General & Administrative	$4.4B
SG&A Expenses	$4.8B
Other Expenses	$151M
Operating Expenses	$6.5B
Cost & Expenses	$15.9B
OPERATING INCOME	$2.2B
Interest Income	$23M
Interest Expense	$323M
Other Income/Expenses	-$639M
INCOME BEFORE TAX	$1.6B
Income Tax Expense	$209M
Net Income from Continuing Ops	$1.4B
Net Income from Discontinued Ops	-$1M
Other Adjustments	$0
NET INCOME	$1.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.4B
D&A	$1.7B
EBIT	$1.9B
EBITDA	$3.6B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$18.1B
Cost of Revenue	$9.4B
GROSS PROFIT	$8.7B
R&D Expenses	$1.6B
Selling & Marketing	$363M
General & Administrative	$4.4B
SG&A Expenses	$4.8B
Other Expenses	$151M
Operating Expenses	$6.5B
Cost & Expenses	$15.9B
OPERATING INCOME	$2.2B
Interest Income	$23M
Interest Expense	$323M
Other Income/Expenses	-$639M
INCOME BEFORE TAX	$1.6B
Income Tax Expense	$209M
Net Income from Continuing Ops	$1.4B
Net Income from Discontinued Ops	-$1M
Other Adjustments	$0
NET INCOME	$1.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.4B
D&A	$1.7B
EBIT	$1.9B
EBITDA	$3.6B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.4B
Depreciation & Amortization	$1.7B
Stock-Based Compensation	$247M
Deferred Income Tax	$0
Other Non-Cash Items	-$155M
Change in Working Capital	$444M
OPERATING CASH FLOW	$3.6B
Capital Expenditure	-$733M
Acquisitions (Net)	$725M
Purchases of Investments	-$2.4B
Sales/Maturities of Investments	$1.0B
Other Investing Activities	$2M
NET CASH FROM INVESTING	-$1.2B
Net Debt Issuance	-$38M
Common Stock Repurchased	-$167M
Common Dividends Paid	-$1.4B
Other Financing Activities	$31M
NET CASH FROM FINANCING	-$1.6B
FREE CASH FLOW	$2.8B
Net Change in Cash	$817M

Balance Sheet

Item	Amount
Cash & Equivalents	$12.0B
Short-Term Investments	$2.1B
Net Receivables	$20.0B
Inventory	$1.9B
Other Current Assets	$1.8B
TOTAL CURRENT ASSETS	$40.0B
PP&E (Net)	$14.5B
Goodwill	$57.8B
Intangible Assets	$14.3B
Long-Term Investments	$1.9B
Tax Assets	$8.7B
Other Non-Current Assets	$17.1B
TOTAL NON-CURRENT ASSETS	$114.2B
TOTAL ASSETS	$154.2B
Account Payables	$4.7B
Short-Term Debt	$9.3B
Deferred Revenue	$12.5B
Other Current Liabilities	$3.5B
TOTAL CURRENT LIABILITIES	$38.4B
Long-Term Debt	$55.2B
Deferred Revenue NC	$3.8B
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$32.4B
TOTAL NON-CURRENT LIABILITIES	$95.1B
TOTAL LIABILITIES	$133.5B
Common Stock	$56.1B
Additional Paid-In Capital	$0
Retained Earnings	$162.6B
Treasury Stock	-$169.4B
Accum. Other Comp. Income	-$28.8B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$20.6B
Minority Interest	$137M
TOTAL EQUITY	$20.7B
TOTAL LIABILITIES & EQUITY	$154.2B
Total Debt	$69.8B
Net Debt	$57.7B