NYSE$IBM

International Business Machines Corporation (IBM) · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

IBM's Q2 2020 earnings reflected accelerated cloud revenue growth, gross margin expansion, and a strong balance sheet and liquidity position.

IBM's second-quarter earnings showed a revenue of $18.1 billion, a decrease of 5.4 percent. However, the company saw growth in cloud revenue, which was up 30 percent, and an increase in GAAP gross profit margin, which rose by 100 basis points. The company's operating EPS was $2.18.

  • GAAP EPS from continuing operations was $1.52
  • Operating (non-GAAP) EPS was $2.18
  • Revenue was $18.1 billion, down 5.4 percent (down 1.9 percent adjusting for divested businesses and currency)
  • GAAP gross profit margin was 48 percent, up 100 basis points; Operating (non-GAAP) gross profit margin of 49 percent up 160 basis points

Headline financials

Total Revenue

$18.1B

Previous: $19.2B-5.4%
EPS (adj)

$2.18

Previous: $3.17-31.2%
Capital Expenditures

-$1.22B

Previous: -$1.12B-8.3%
Free Cash Flow

$146M

Previous: $1.38B-89.4%
Net Income

$1.36B

Previous: $2.5B-45.5%
Operating Income

$876M

Previous: $1.95B-55.1%
Gross Profit

$8.7B

Previous: $9.01B-3.4%
Cash & Equivalents

$12B

Previous: $45.4B-73.5%
Total Assets

$154B

Previous: $155B-0.3%
Stock-Based Comp

$247M

Previous: $135M+83.0%

Revenue & EPS history

IBM · Revenue · Quarterly

$18.1B

Q2 2020-5.4%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Forward guidance

Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially.

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 Q2 2020

Historical avgQ2 2020

-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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