IBM's Q2 Earning Report

👉 Business Highlights:
➡️ Accelerated revenue growth led by Software.
➡️ Book of business for generative AI surpassed $2 billion.
➡️ Raised full-year free cash flow expectation to over $12 billion.
➡️ IBM Z and Hybrid Infrastructure contributed significantly to growth.
➡️ Strong performance in Red Hat and Automation segments.

👉 Business Segments:
➡️ Software Revenue: $6.7B, up 7.1% (8.4% at constant currency).
➡️ Consulting Revenue: $5.2B, down 0.9% (up 1.8% at constant currency).
➡️ Infrastructure Revenue: $3.6B, up 0.7% (2.7% at constant currency).

👉 CEO Statement:
"We had a strong second quarter, exceeding our expectations, driven by growth in both revenue and free cash flow. We continue to see that clients turn to IBM for our technology and our expertise in enterprise AI, and our book of business for generative AI has grown to more than two billion dollars since the launch of watsonx one year ago," said Arvind Krishna, IBM chairman and chief executive officer. "Given our first-half results, we are raising our full-year view of free cash flow, which we now expect to be more than $12 billion.”

👉 CFO Statement:
"In the quarter, we accelerated our revenue growth as we continue to execute well on our strategy. Our business fundamentals, operating leverage, product mix, and productivity initiatives all contributed to significant margin expansion and increased profit and free cash flow," said James Kavanaugh, IBM senior vice president and chief financial officer. "Our strong cash generation enables us to continue investing in innovation and expertise across the portfolio, while returning value to shareholders through dividends.”