International Business Machines Corporation ( (IBM) ) has released its Q2 earnings. Here is a breakdown of the information International Business Machines Corporation presented to its investors.
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International Business Machines Corporation (IBM) is a global technology and consulting company, known for its leadership in software, infrastructure, and consulting services, with a strong focus on innovation and AI solutions.
In its second-quarter 2025 earnings report, IBM announced significant growth in revenue, profit, and free cash flow, driven by its software and infrastructure sectors. The company has raised its full-year outlook for profit and free cash flow, reflecting its strong performance and strategic advancements.
Key highlights from the report include an 8% increase in total revenue to $17 billion, with software revenue up by 10% and infrastructure revenue by 14%. IBM’s gross profit margin improved to 58.8%, and its pre-tax income margin increased to 15.3%. The company’s free cash flow reached $2.8 billion for the quarter, marking a $0.2 billion year-over-year increase.
IBM’s strategic focus on AI and hybrid cloud solutions continues to pay off, with its generative AI business now valued at over $7.5 billion. The company’s infrastructure segment saw notable growth, particularly in hybrid infrastructure and IBM Z systems. Despite a slight decline in consulting revenue at constant currency, the overall consulting segment remained stable.
Looking ahead, IBM maintains a positive outlook, expecting constant currency revenue growth of at least 5% for the full year and free cash flow to exceed $13.5 billion. The company remains committed to innovation and delivering value to shareholders through strategic investments and consistent dividends.