IBM Releases Q3 2022 Results 

ARMONK, N.Y., Oct. 20, 2022 -- IBM has announced third-quarter 2022 earnings results.

"IBM delivered strong revenue growth in the quarter, reflecting our continued focus on the execution of our strategy. Globally, clients view technology as an opportunity to enhance their business, which is evident in the results across our portfolio," said Arvind Krishna, IBM chairman and chief executive officer. "With our year-to-date performance, we now expect full-year revenue growth above our mid-single digit model."

Third-Quarter Highlights

• Revenue of $14.1 billion, up 6 percent, up 15 percent at constant currency (about 5 points from sales to Kyndryl).
• Software revenue up 7 percent, up 14 percent at constant currency (about 8 points from sales to Kyndryl).
• Consulting revenue up 5 percent, up 16 percent at constant currency.
• Infrastructure revenue up 15 percent, up 23 percent at constant currency (about 9 points from sales to Kyndryl).
  Hybrid cloud revenue, over the last 12 months, of $22.2 billion, up 15 percent, up 20 percent at constant currency.
• On a consolidated basis, year to date, net cash from operating activities of $6.5 billion; free cash flow of $4.1 billion.

"Both our revenue growth and operating profit profile for the first three quarters of the year align to the investment thesis we outlined last fall," said James Kavanaugh, IBM senior vice president and chief financial officer. "Our portfolio mix, business fundamentals, strong recurring revenue stream and solid cash generation allow us to invest for continued growth and return value to shareholders through dividends."

Cash Flow and Balance Sheet

On a consolidated basis, in the third quarter, the company generated net cash from operating activities of $1.9 billion or $1.2 billion excluding IBM Financing receivables. IBM's free cash flow was $0.8 billion. The company returned $1.5 billion to shareholders in dividends in the third quarter.

On a consolidated basis, for the first nine months of the year, the company generated net cash from operating activities of $6.5 billion or $5.4 billion excluding IBM Financing receivables. IBM's free cash flow was $4.1 billion, which includes cash impacts from the company's structural actions initiated at the end of 2020.

IBM ended the third quarter with $9.7 billion of cash on hand (which includes marketable securities), up $2.2 billion from year-end 2021. Debt, including IBM Financing debt of $11.2 billion, totaled $50.9 billion, down $0.8 billion since the end of 2021.

Full-Year 2022 Expectations

• Revenue Growth: The company now expects constant currency revenue growth above its mid-single digit model. The company continues to expect an additional contribution of approximately 3.5 points from sales to Kyndryl, concentrated in the first three quarters. At mid-October 2022 foreign exchange rates, currency is expected to be about a seven-point headwind.
• Free Cash Flow: The company continues to expect about $10 billion in consolidated free cash flow.

To read the complete Q3 results for IBM, please click here.

Source: IBM