NYSE$IBM

International Business Machines Corporation (IBM) · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

IBM's first quarter results were released, showcasing double-digit growth in Software and Consulting, driven by hybrid cloud adoption and strong profit generation.

IBM reported first-quarter 2022 revenue of $14.2 billion, up 8 percent year-over-year (11 percent at constant currency). The growth was driven by strong performance in Software and Consulting, fueled by demand for hybrid cloud and AI solutions. The company now expects revenue growth for 2022 at the high end of its model.

  • Revenue reached $14.2 billion, reflecting an 8% increase (11% at constant currency), with over 5 points attributed to incremental sales to Kyndryl.
  • Software revenue increased by 12% (15% at constant currency), with over 8 points from incremental sales to Kyndryl.
  • Consulting revenue grew by 13% (17% at constant currency).
  • Free cash flow was $1.2 billion.

Headline financials

Total Revenue

$14.2B

Previous: $17.7B-19.9%
EPS (adj)

$1.40

Previous: $1.77-20.9%
Capital Expenditures

-$281M

Previous: -$494M+43.1%
Free Cash Flow

$452M

Previous: $461M-2.0%
Net Income

$733M

Previous: $955M-23.2%
Operating Income

$470M

Previous: $1.08B-56.6%
Gross Profit

$7.34B

Previous: $8.2B-10.6%
Cash & Equivalents

$9.93B

Previous: $10.5B-5.7%
Total Assets

$133B

Previous: $149B-10.3%
Stock-Based Comp

$234M

Previous: $213M+9.9%

Revenue & EPS history

IBM · Revenue · Quarterly

$14.2B

Q1 2022-19.9%vs Q1 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

IBM expects constant currency revenue growth at the high end of the mid-single digit range and anticipates a 3.5 point contribution from incremental sales to Kyndryl. The company continues to expect $10 billion to $10.5 billion in consolidated free cash flow. Currency is expected to be a three to four point headwind.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.8%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-0.5%

Avg return

30 days after

41%

30 / 73 earnings

Positive

+13.0%

Q4 2024

Best reaction

-10.3%

Q3 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.1%-7.5%+0.8%
Q4 2025-3.0%+0.1%-18.3%
Q3 2025+4.0%+8.7%+3.5%
Q2 2025+1.1%+2.3%+6.9%
Q1 2025-6.6%-2.5%+5.4%
Q4 2024+13.0%+15.7%+10.4%
Q3 2024-6.0%-8.3%-4.0%
Q2 2024+4.3%+4.0%+6.5%
Q1 2024-7.3%-8.1%-6.2%
Q4 2023+9.5%+7.6%+6.8%
Q3 2023+4.3%+3.5%+12.6%
Q2 2023+2.2%+3.1%+4.5%
Q1 2023-1.1%-1.9%-0.4%
Q4 2022-5.0%-4.4%-7.7%
Q3 2022+4.4%+7.9%+20.1%
Q2 2022-6.5%-8.3%-1.5%
Q1 2022+9.6%+9.6%+2.8%
Q4 2021+5.2%+4.0%-5.6%
Q3 2021-9.6%-10.1%-14.5%
Q2 2021+0.8%+1.8%+0.4%
Q1 2021+3.4%+6.6%+7.2%
Q4 2020-8.8%-5.8%-8.5%
Q3 2020-6.8%-7.9%-7.3%
Q2 2020+0.8%+0.5%-1.0%
Q1 2020-2.8%+3.8%+1.0%
Q4 2019+4.0%+1.6%+9.3%
Q3 2019-6.1%-7.3%-6.0%
Q2 2019+4.3%+4.3%-6.8%
Q1 2019-3.3%-2.5%-5.6%
Q4 2018+7.3%+8.2%+11.3%
Q3 2018-5.0%-8.5%-14.0%
Q2 2018+4.0%+1.5%+1.8%
Q1 2018-5.8%-8.2%-8.5%
Q4 2017-3.7%-1.4%-7.4%
Q3 2017+8.6%+10.4%+1.6%
Q2 2017-3.6%-3.9%-8.0%
Q1 2017-5.5%-6.3%-11.9%
Q4 2016+2.2%+5.5%+8.3%
Q3 2016-2.4%-3.1%+3.1%
Q2 2016-0.1%+1.4%+0.4%
Q1 2016-5.1%
Q4 2015-6.3%
Q3 2015-6.5%
Q2 2015-5.5%
Q1 2015+2.2%
Q4 2014-3.2%
Q3 2014-10.3%
Q2 2014+0.1%
Q1 2014-3.6%
Q4 2013-4.1%
Q3 2013-5.3%
Q2 2013+2.1%
Q1 2013-9.4%
Q4 2012+5.3%
Q3 2012-4.0%
Q2 2012+6.4%
Q1 2012-1.3%
Q4 2011-0.4%
Q3 2011-0.2%
Q2 2011-1.3%
Q1 2011+0.4%
Q4 2010-2.8%
Q2 2010-2.8%
Q3 2010+1.1%
Q1 2009-0.5%
Q1 2010-0.4%
Q4 2009+0.6%
Q4 2007+0.6%
Q3 2008+1.2%
Q3 2009+1.2%
Q2 2009-0.3%
Q2 2008-0.3%
Q4 2008-0.3%

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