IBM announced its second-quarter 2022 earnings results, seeing revenues go up across several key segments including software, infrastructure, and hybrid cloud.
"In the quarter we delivered good revenue performance with balanced growth across our geographies, driven by client demand for our hybrid cloud and AI offerings. The IBM team executed our strategy well," said Arvind Krishna, IBM chairman and chief executive officer. "With our first half results, we continue to expect full-year revenue growth at the high end of our mid-single digit model."
Software (includes Hybrid Platform and Solutions, Transaction Processing)—revenues of $6.2 billion, up 6.4% at constant currency (about 7 points from sales to Kyndryl):
- Hybrid Platform and Solutions up 4%, up 9% at constant currency (about 1.5 points from sales to Kyndryl):
-- Red Hat up 12%, up 17% at constant currency
-- Automation up 4%, up 8% at constant currency
- Transaction Processing up 12%, up 19% at constant currency (about 22 points from sales to Kyndryl)
- Software segment hybrid cloud revenue up 14%, up 18% at constant currency
Infrastructure (includes Hybrid Infrastructure, Infrastructure Support)—revenues of $4.2 billion, up 19.0%, up 25.4% at constant currency (about 7 points from sales to Kyndryl):
- Hybrid Infrastructure up 34%, up 41% at constant currency (about 7 points from sales to Kyndryl)
-- IBM z Systems up 69%, up 77% at constant currency
-- Distributed Infrastructure up 11%, up 17% at constant currency
- Infrastructure segment hybrid cloud revenue up 24%, up 30% at constant currency
On a consolidated basis, in the second quarter, the company generated net cash from operating activities of $1.3 billion or $2.6 billion excluding IBM Financing receivables. IBM's free cash flow was $2.1 billion. The company returned $1.5 billion to shareholders in dividends in the second quarter.
The company continues to expect constant currency revenue growth at the high end of its mid-single digit model. The company also expects an additional 3.5 point contribution from incremental sales to Kyndryl. At mid-July 2022 foreign exchange rates, currency is expected to be about a six-point headwind.
For more information about this news, visit www.ibm.com.