IBM (NYSE:IBM) reported Q3 results of $19.2 billion and $3.30 EPS, slightly better than $18.6 billion and $3.29 EPS expectations. These revenues were flat YTY (down 1% in constant currencies) and these earnings were virtually flat to $3.29 EPS in Q3 2016 earnings.
By sector, as reported in dollars with currency having 1% or less impact:
- Cognitive solutions revenues increased 3.9% YTY to $4.40 billion
- Systems revenues increased 10.5% YTY to $1.72 billion, help but the initial shipments of a new generation of System Z mainframes the last two weeks of the quarter.
- Global business services revenues declined 2.3% YTY to $4.09 billion.
- Technology services and cloud platform revenues declined 3.3% YTY to $8.46 billion.
- Global financing revenues increased 3.6% YTY to $427 million.
IBM management likes to highlight their growth for what they call “Strategic Imperatives Revenues” (AI, analytics, cyber security and cloud). They increased 11% YTY in Q3 to $8.8 billion or 46% of total revenues. Over the last 12 months strategic imperatives revenues were up 10% to $34.9 billion or 45% of total revenues.