IBM Q2 2021 Earnings Report — International Business Machines Corporation Revenue & Financial Results | Market Cap Arena

International Business Machines CorporationIBM

Q2 2021 Earnings

Reported July 27, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2021	Q1 2021	Q2 2020	QoQ Change	YoY Change
Revenue	$14.2B	$13.2B	$18.1B	7.8%	-21.5%
Op. Income	$1.6B	$956M	$2.2B	67.3%	-27.6%
Gross Margin	55.2%	53.3%	48.0%	1.9pp	7.2pp
Net Margin	9.3%	7.2%	7.5%	2.1pp	1.8pp
EPS (Diluted)	$1.47	$1.06	$1.52	38.7%	-3.3%
Free Cash Flow	$1.9B	$4.2B	$2.8B	-56.2%	-34.5%

Revenue Flow

Item	Amount
REVENUE	$14.2B
Cost of Revenue	$6.4B
GROSS PROFIT	$7.9B
R&D Expenses	$1.6B
Selling & Marketing	$393M
General & Administrative	$4.1B
SG&A Expenses	$4.5B
Other Expenses	$124M
Operating Expenses	$6.3B
Cost & Expenses	$12.6B
OPERATING INCOME	$1.6B
Interest Income	$11M
Interest Expense	$281M
Other Income/Expenses	-$687M
INCOME BEFORE TAX	$911M
Income Tax Expense	$101M
Net Income from Continuing Ops	$810M
Net Income from Discontinued Ops	$515M
Other Adjustments	$0
NET INCOME	$1.3B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.3B
D&A	$1.7B
EBIT	$1.2B
EBITDA	$2.9B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$14.2B
Cost of Revenue	$6.4B
GROSS PROFIT	$7.9B
R&D Expenses	$1.6B
Selling & Marketing	$393M
General & Administrative	$4.1B
SG&A Expenses	$4.5B
Other Expenses	$124M
Operating Expenses	$6.3B
Cost & Expenses	$12.6B
OPERATING INCOME	$1.6B
Interest Income	$11M
Interest Expense	$281M
Other Income/Expenses	-$687M
INCOME BEFORE TAX	$911M
Income Tax Expense	$101M
Net Income from Continuing Ops	$810M
Net Income from Discontinued Ops	$515M
Other Adjustments	$0
NET INCOME	$1.3B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.3B
D&A	$1.7B
EBIT	$1.2B
EBITDA	$2.9B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.3B
Depreciation & Amortization	$1.7B
Stock-Based Compensation	$244M
Deferred Income Tax	$0
Other Non-Cash Items	-$152M
Change in Working Capital	-$472M
OPERATING CASH FLOW	$2.6B
Capital Expenditure	-$764M
Acquisitions (Net)	-$1.8B
Purchases of Investments	-$1.0B
Sales/Maturities of Investments	$763M
Other Investing Activities	-$103M
NET CASH FROM INVESTING	-$2.7B
Net Debt Issuance	-$1.5B
Common Stock Repurchased	-$193M
Common Dividends Paid	-$1.5B
Other Financing Activities	$29M
NET CASH FROM FINANCING	-$3.1B
FREE CASH FLOW	$1.9B
Net Change in Cash	-$3.1B

Balance Sheet

Item	Amount
Cash & Equivalents	$7.3B
Short-Term Investments	$600M
Net Receivables	$16.4B
Inventory	$1.8B
Other Current Assets	$2.8B
TOTAL CURRENT ASSETS	$30.8B
PP&E (Net)	$13.8B
Goodwill	$61.6B
Intangible Assets	$13.5B
Long-Term Investments	$2.0B
Tax Assets	$9.0B
Other Non-Current Assets	$16.1B
TOTAL NON-CURRENT ASSETS	$116.0B
TOTAL ASSETS	$146.8B
Account Payables	$4.2B
Short-Term Debt	$6.4B
Deferred Revenue	$13.3B
Other Current Liabilities	$3.8B
TOTAL CURRENT LIABILITIES	$36.6B
Long-Term Debt	$48.7B
Deferred Revenue NC	$4.1B
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$32.0B
TOTAL NON-CURRENT LIABILITIES	$88.1B
TOTAL LIABILITIES	$124.7B
Common Stock	$56.9B
Additional Paid-In Capital	$0
Retained Earnings	$162.1B
Treasury Stock	-$169.4B
Accum. Other Comp. Income	-$27.7B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$21.9B
Minority Interest	$125M
TOTAL EQUITY	$22.1B
TOTAL LIABILITIES & EQUITY	$146.8B
Total Debt	$59.8B
Net Debt	$52.4B