The IBM 2Q 2017 earnings report was released after closing bell tonight, and the company posted non-GAAP earnings of $2.97 per share on $19.3 billion in sales, compared to the consensus estimates of $2.75 per share in earnings on $19.45 billion in revenue. In the second quarter of last year, International business Machines reported earnings of $2.95 per share on $20.2 billion in sales.
IBM 2Q 2017 earnings report
The IBM 2Q 2017 earnings report revealed GAAP earnings of $2.48 per share, a year over year decline of 5%. The company's GAAP gross margin fell 2.3 points year over year to 45.6%, while its non-GAAP gross margin declined 1.8 points to 47.2%.
Strategic Imperatives revenues grew 15% year over year in the second quarter, bringing it to $3.9 billion. For the trailing 12 months, the segment's revenue is up 11% and made up 43% of IBM's total revenue. Over the trailing 12 months, cloud revenue amounted to $15.1 billion. The annual exit run rate for IBM's as-a-service offerings grew 30% year over year to $8.8 billion. Analytics revenue grew 4%, while mobile revenues surged 27% year over year. security revenues increased 4%.
Cognitive Solutions revenue, which includes solutions and transaction processing software, declined 2.5% to $4.6 billion, while Global Business Services revenues, which includes consulting, global process services and application management, fell 3.7% to $4.1 billion. Technology Services and Cloud Platforms revenue, which includes infrastructure and tech support services and integration software, declined 5.1% to $8.4 billion. Systems revenues fell 10.4% to $1.7 billion, while Global Financing revenues declined 2.2% to $415 million.
“In the second quarter, we strengthened our position as the enterprise cloud leader and added more of the world's leading companies to the IBM Cloud,” IBM Chairman, President and CEO Ginni Rometty said in a statement. “We continue to innovate, adding regtech capabilities to our portfolio of Watson offerings; developing solutions based on emerging technologies such as Blockchain; and reinventing the IBM mainframe by enabling clients to encrypt all data, all the time.”
