Solid Overall Financial Performance
IBM delivered $17 billion in revenue, $4.7 billion of adjusted EBITDA, $3.2 billion of operating pretax income, and operating earnings per share of $2.80. The company generated $4.8 billion of free cash flow, its highest first half free cash flow margin in many years.
Software and Infrastructure Growth
Software grew 8% with notable growth in Red Hat at 14%. Infrastructure revenue grew 11%, with Hybrid Infrastructure up 19%. IBM Z was up 67%, driven by the strong start of the z17 program.
Red Hat and Automation Success
Red Hat growth accelerated to 14%, with OpenShift revenue growing more than 20%. Automation grew 14%, with HashiCorp off to a strong start, reflecting IBM's global reach and product synergies.
AI and GenAI Business Momentum
IBM's GenAI book of business stands at over $7.5 billion inception-to-date, with significant demand for AI agents, assistants, and consulting services to deploy AI.
Increased Free Cash Flow Guidance
IBM raised its expectations for free cash flow to above $13.5 billion for the year, reflecting strong performance and confidence in sustainable growth.