Summary by Futu AI
IBM reported Q1 2025 revenue of $14.5 billion, up 0.6% year-over-year (2.3% in constant currency), with net income of $1.1 billion and operating earnings of $1.5 billion. Software segment revenue grew 7.4% to $6.3 billion, driven by strong demand for hybrid cloud and AI capabilities. Gross margin expanded 1.7 points to 55.2%.The company generated $4.4 billion in cash from operations and $2.0 billion in free cash flow during the quarter. Software annual recurring revenue reached $21.7 billion, up 9.2% YoY, with approximately 80% of software revenue coming from recurring sources. The company completed three acquisitions including HashiCorp for $7.1 billion to strengthen its hybrid cloud portfolio.Looking ahead, IBM announced the upcoming launch of z17 mainframe in June 2025, offering enhanced AI acceleration capabilities. The company maintains a strong liquidity position with $17.6 billion in cash and marketable securities. Management remains focused on its hybrid cloud and AI strategy while continuing investments in emerging technologies like Quantum computing.
