NYSE$IBM

International Business Machines Corporation (IBM) · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

IBM's cloud business drove revenue growth and gross margin expansion, while maintaining a solid balance sheet and liquidity.

IBM reported Q3 2020 earnings with a revenue of $17.6 billion, a decrease of 2.6 percent. However, the cloud business showed strong performance, with cloud revenue up 19 percent. The company also delivered gross profit margin expansion and generated solid free cash flow.

  • GAAP EPS from continuing operations was $1.89.
  • Operating (non-GAAP) EPS was $2.58.
  • Total cloud revenue was $6.0 billion, up 19 percent.
  • GAAP gross profit margin was 48 percent, up 180 basis points; Operating (non-GAAP) gross profit margin was 49 percent, up 160 basis points.

Headline financials

Total Revenue

$17.6B

Previous: $18B-2.6%
EPS (adj)

$2.58

Previous: $2.68-3.7%
Capital Expenditures

-$1.94B

Previous: -$1.71B-13.5%
Free Cash Flow

-$242M

Previous: -$38M-536.8%
Net Income

$1.7B

Previous: $1.67B+1.6%
Operating Income

$500M

Previous: $651M-23.2%
Gross Profit

$8.43B

Previous: $8.34B+1.1%
Cash & Equivalents

$14.4B

Previous: $10.1B+42.7%
Total Assets

$154B

Previous: $150B+3.0%
Stock-Based Comp

$222M

Previous: $220M+0.9%

Revenue & EPS history

IBM · Revenue · Quarterly

$17.6B

Q3 2020-2.6%vs Q3 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Forward guidance

This document does not contain forward guidance.

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 Q3 2020

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro