IBM reported Q3 2017 revenue of $19.2 billion, flat compared to a year ago and down 1% yoy when accounting for currency.
In the third quarter, the company generated net cash from operating activities of $3.6 billion, or $3.3 billion excluding Global Financing receivables. IBM’s free cash flow was $2.5 billion. IBM returned $1.4 billion in dividends and $0.9 billion of gross share repurchases to shareholders.
“In the third quarter we achieved double-digit growth in our strategic imperatives, extended our enterprise cloud leadership, and expanded our cognitive solutions business,” said Ginni Rometty, IBM chairman, president and chief executive officer. “There was enthusiastic adoption of IBM’s new z Systems mainframe, which delivers breakthrough security capabilities to our clients.”
Some highlights:
- Q3 cloud revenues increased 20 percent to $4.1 billion.
- Cloud revenue over the last 12 months was $15.8 billion, including $8.8 billion delivered as-a-service and $7.0 billion for hardware, software and services.
- The annual exit run rate for as-a-service revenue increased to $9.4 billion from $7.5 billion in the third quarter of 2016.
- Q3 revenues from analytics increased 5 percent.
- Q3evenues from mobile increased 7 percent
- Q3 revenues from security increased 51 percent (up 49 percent adjusting for currency).
- IBM continues to make capital investments in cloud and cognitive capabilities.