AI Takeaway
IBM delivered a strong Q1 2024 with net income surging 73.1% YoY to $1.6B on modest 1.5% revenue growth to $14.5B, driven by improved margins and significantly higher operating cash flow.
Revenue
$14.46B
++1.47% YoY
EPS (Basic)
$1.75
++71.57% YoY
Gross Margin
53.5%
++0.85% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
IBM reported Q1 2024 revenue of $14.46B, up 1.5% YoY from $14.25B, reflecting steady demand across its hybrid cloud and AI-focused portfolio despite a challenging macroeconomic environment.
Source: Source: 10-Q Financial Data, Income Statement
Net income jumped 73.1% YoY to $1.605B from $927M, with diluted EPS rising 70.3% to $1.72, suggesting significant improvement in operational efficiency and/or favorable below-the-line items compared to the prior year period.
Source: Source: 10-Q Financial Data, Income Statement
Gross profit grew 3.1% YoY to $7.74B, pushing gross margin up approximately 85 basis points to 53.5% from 52.7%, indicating IBM is generating more profit per dollar of revenue as its higher-margin software and services mix improves.
Source: Source: 10-Q Financial Data, Income Statement & Key Ratios
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Upgrade to unlockIBM carries $54.0B in long-term debt against stockholders' equity of $23.3B, resulting in a debt-to-equity ratio of approximately 4.89x. This elevated leverage limits financial flexibility and increases vulnerability to rising interest rates, which could materially increase interest expense and pressure free cash flow.
Source: Source: 10-Q Financial Data, Balance Sheet & Key Ratios
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Upgrade to unlock| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $14.46B | $14.25B | +1.47% |
Cost of Revenue | $6.72B | $6.74B | -0.36% |
Gross Profit | $7.74B | $7.51B | +3.10% |
Net Income | $1.6B | $927M | +73.14% |
EPS (Basic) | $1.75 | $1.02 | +71.57% |
EPS (Diluted) | $1.72 | $1.01 | +70.30% |
R&D Expense | $1.8B | $1.66B | +8.52% |
SG&A Expense | $4.97B | $4.85B | +2.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $137.17B | $133.64B | +2.64% |
Current Assets | $36.66B | $35.98B | +1.89% |
Total Liabilities | $113.84B | $111.96B | +1.67% |
Current Liabilities | $32.4B | $30.99B | +4.53% |
Stockholders' Equity | $23.26B | $21.6B | +7.67% |
Cash & Equivalents | $14.6B | $9.34B | +56.40% |
Long-Term Debt | $54.03B | $53.83B | +0.38% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.17B | $3.77B | +10.44% |
Investing Cash Flow | $-4.21B | $-7.96B | +47.11% |
Financing Cash Flow | $1.88B | $5.71B | -67.12% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 53.5% | 52.7% | +0.85% |
Net Margin | 11.1% | — | — |
ROE | 6.9% | — | — |
ROA | 1.2% | — | — |
Current Ratio | $1.132 | — | — |
Debt to Equity | $4.894 | — | — |
IBM delivered strong Q1 2026 results with revenue of $15.9B (+9.5% YoY) and net income of $1.2B (+15.3% YoY), driven by gross margin expansion to 56.2% and robust operating cash flow growth of 18.3%.
IBM delivered strong FY2025 results with revenue growing 7.6% to $67.5B and net income surging 75.9% to $10.6B, driven by gross margin expansion to 58.2% and likely boosted by the HashiCorp acquisition, though elevated debt and a current ratio below 1.0 warrant monitoring.
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IBM reported Q1 2024 revenue of $14.46B, up 1.5% YoY, while net income surged 73.1% to $1.605B. Diluted EPS came in at $1.72 compared to $1.01 in Q1 2023, representing a 70.3% improvement.
The standout highlights were a dramatic 73.1% jump in net income to $1.6B, gross margin expansion to 53.5%, and a 56.4% surge in cash and equivalents to $14.6B. Operating cash flow also grew 10.4% YoY to $4.17B, underscoring strong cash generation despite modest top-line growth of only 1.5%.
Yes, IBM's revenue grew 1.5% YoY to $14.46B in Q1 2024, up from $14.25B in Q1 2023. While growth was modest, it was accompanied by meaningful margin improvement, with gross margin rising to 53.5% from 52.7%.
Based on the financial data, IBM's key risks include its high leverage with $54B in long-term debt and a debt-to-equity ratio of 4.89x, slowing revenue growth of only 1.5% YoY, and rising R&D and SG&A expenses that could pressure operating margins. Additionally, current liabilities grew 4.5% YoY versus only 1.9% growth in current assets, tightening IBM's short-term liquidity cushion.
IBM's financial health is mixed: it has strong cash generation with $4.17B in operating cash flow and a solid $14.6B cash balance, but carries a heavy debt load of $54B in long-term debt and a high debt-to-equity ratio of 4.89x. The current ratio of 1.13x suggests adequate short-term liquidity, though the gap between current assets and liabilities is narrowing.