IBM gained net profit at $2.014 billion in Q1, decreased by 13.5%


IBM announced the first quarterly earnings of 2016 by March 31st today. The earnings showed that IBM received the total revenue at $18.684 billion based on GAAP. It decreased by 4.6% compared with its revenue in Q1 2015. Its net profit of Q1 2016 was $2.014 billion, decreased by 13.5 YOY. The net profit for sustainable operating business was $ 2.016 billion which decreased by 16.5 % YoY.

Its free cash flow in this Q1 was $ 2.3 billion, increased by $1.2 billion YOY. IBM distributed $1.2 billion cash as dividends to its shareholders in Q1 and $ 900 million for stocks buy-back.

By the end of Q1, IBM held $14.9 billion cash which increased by $ 6.7 billion compared with 2015.

Classified by departments, their increase rate seemed slower and suffered decrease in some important apartments.

Its Global Business service department gained $ 4.1 billion revenue, declined by 4.3% before exchange rate adjustment. Its Strategic Imperatives revenue increased by 19% YOY before exchange rate adjustment.

IBM predicted that each of its share will profit at least $ 12.35 in 2016 fiscal year. According to the non-GAAP standard, each of its share will profit at least $ 13.5 in 2016 fiscal year.

It previous predicted its annual free cash flow will range from $ 11 billion to $12 billion.

Its share increased by $ 0.81 till Monday, closing at $ 152.53. However, its share decreased by $ 7.54 on Tuesday.

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