"Our enterprise AI strategy is resonating as we evolve to meet client needs." - Arvind Krishna
— Arvind Krishna
03Detailed Report
IBM
International Business Machines Corporation
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 19, 2026
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Executive Summary
In Q2 2024, International Business Machines Corporation (IBM) delivered a robust performance with reported revenue of $15.8 billion, up 4% year-over-year at constant currency, and net income of $1.834 billion, translating into diluted earnings per share (EPS) of $1.96. Key drivers of growth included a notable 8% increase in the Software segment, propelled by advancements in AI and hybrid cloud solutions, alongside a 3% gain in Infrastructure revenue. However, the Consulting segment faced headwinds, with growth limited to 2% due to tighter discretionary spending. Management's commentary underlined a strong focus on AI integration, leading to confidence in maintaining sustainable growth despite near-term challenges in consulting.
Key Performance Indicators
Revenue
Increasing
15.77B
QoQ: 9.05% | YoY: 1.90%
Gross Profit
Increasing
8.95B
56.76% margin
QoQ: 15.60% | YoY: 5.28%
Net Income
Increasing
1.83B
QoQ: 14.27% | YoY: 15.86%
EPS
Increasing
1.99
QoQ: 13.71% | YoY: 14.37%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $15.8 billion, increasing 4% YoY Gross Profit: $8.95 billion, with a gross margin of 56.8%, showing improvement from previous quarters Net Income: $1.834 billion, or an increase of 15.9% YoY EPS: $1.96 (diluted), reflecting a growth of 14.4% YoY Free Cash Flow: $4.5 billion generated in H1 2024, up $1.1 billion year-over-year Operating Margin: Expanded by 190 basis points to 24.1% driven by productivity initiatives and favorable product mix.
These results further illustrate IBM's resilience, with strong YoY comparisons in software and infrastructure performance despite consulting's tighter climate.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
15.77B
1.90%
9.05%
Gross Profit
8.95B
5.28%
15.60%
Net Income
1.83B
15.86%
14.27%
EPS
1.99
14.37%
13.71%
Key Financial Ratios
Gross Profit Margin
Good
56.80%
Gross profit margin is healthy and competitive within industry standards
Net Profit Margin
Good
11.60%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.37%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
7.63%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.09
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
2.49
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
21.97x
P/E ratio in line with market averages
Price to Book
High Premium
6.71x
Very high premium suggests asset-light business model or lofty expectations
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