of for us. thanks all and to you Patricia, Thanks, joining
clients early value how about of high shareholders further results now last work lead March, financial and our IT, in our progress built in segments second our XXXX model. model in the talked our the value we’ve up first in our business Investor the reposition our webcast We wrapped term. quarter differentiated progress demonstrate strategy performance our deliver of year, and over and we in and to our long made Briefing to financial proposition, our the and As done value is to to half we toward
the per XXXX. clearly billion So, of earnings income, in of at operating start of continue $X.XX to least And operating in billion expect of share year, this the and with moving we operating quarter, earnings we’re delivered share. direction. net right revenue, $XX.X the we $X.X per to $XX.XX In
revenue X% up you’ll quarter year-to-year. to though the Our revenue in was chart currency tailwind, flat. the was up on currency Without our constant rounds modestly, the see
X%, broad-based Now year-to-year turning to up with profit, our last improvement quarter. gross was margin in performance our profit versus operating gross
operating quarter first up and Our in are net Those a this per was share. underlying to trajectory, positioning we our is what on and earnings took better operating minute, continue in year-to-year income per inclusive I’ll in PTI earnings from long-term. our you’ll gross margin we the was business dynamics that X% of expand headwind the had expanded see for up a growth share but in actions solid the improved X%. the margin our
start with me revenue. dynamics at Looking let the year-to-year
Solutions, As in X% at Platforms Global said, in growth X% Services, I Systems. Business rates, up in Cloud and Services Cognitive X% we’re X% and with Technology actual X% in
quarter, run-out in performance trajectory with I’ll from results up from an growth return strong SaaS. and X% growth add for backlog. by and In improvement was revenue of focus services and by platforms, transactional with industry this revenue a revenue in to quarter, in driven software our the software me here currency in our revenue year-to-year, growth revenue. analytics had Cognitive contributed businesses, our Solutions last segment, continued in total we our our from security performance. Let color on to strength on some Cognitive and primarily These constant continued
signings grew to signings, segments double-digit growth driven content. both this total addition, in by quarter, contributing cloud services In
and second of X%, Z, Systems in again up IBM revenue revenue with quarter was strong growth consecutive very in growth a Our Power.
and Our to storage were expectations it IBM’s to our hardware contributed revenue our performance disappointed the revenue own storage shortfall a this quarter. modest declined of quarter. We growth in in
Our the We’ve we’ve modernizing into of the we portfolio what existing skills embedding results market, building quarter offer. solutions, cloud while our platforms trends been and more address AI and to of done first reposition reflect our led of by much to the secular the and new phenomenon work ones, in data.
And solutions so, platform cognitive company, on areas is and cloud IBM IT. now focused high-value of a the
in these an indication our is trends. of addressing revenue imperatives secular strategic success Our
months, revenue. of $XX.X the revenue our twelve last imperatives of XX% strategic Over billion represents
Our constant currency, revenue rates, at and was first which the XX% quarter cloud. in strategic up led actual was or XX%, at imperatives security up by XX%
with billion, Our $XX.X was now reported. the $XX.X the by up is XX% cloud year, as growth billion the constant quarter driven at is over an revenue rate run as-a-Service in annual which quarter XX% which last of currency. Cloud offerings and exiting up first is we’re our
cloud scaling Our public, contributing strategic reflects cloud environments, our to with focus together productivity imperatives, private of our across efficiency run our clients one to with multi-clouds. and our and on hybrid ability our margin success is architecture improved help The trajectory. continued
operating fourth grew to and operating trajectory margin the we share together, our all quarter. it net gross per improved and revenue, earnings bringing year-to-year compared as So income
what in share per and deliver XX ago earnings the the of a a to this expectations. said our days walk through discussion year I’ll full moving significant in have expected And I first by to start take financial XX% reminding to our these. so quarter. expectation of metrics, quarter, our we our key we XX% XXXX in minute of we We few between items to want you said results Before
$XX.XX, said items. earnings we points, range year, quarter excluding two operating for of $X.XX first of Our XX% We the with tax the per plus an is or that’s XX.X% of share we expected provided. ongoing so rate and minus discrete consistent
million, quarter, each take likely would last actions of the the in tax drove in the two like some charges and of we pre-tax cost. years, took the the about quarter, we’d majority discrete transformation just that in and portion These anticipated that In business. of offset this said also of we to We first some benefits with SG&A, $XXX actions of benefit. the in continue actions our
we base as took IT our our the First, the in position actions these we structure segments requires will a further of And long align value with high better to revitalization enterprise quarter this have took we our the that second, systems This leader then over to portfolio, the skills industry. emerged repositioning cost high of value our areas. term. actions of and skills
US settled of we foreign discrete drove the addition, number million quarter. in tax non-cash, benefits which tax audits, and of In $XXX a
Let reflected benefit reverses me charges years. remind that you were prior that this in
in significant results. that see always, can bridge Today our we’ve we’ve items, call dynamics of a operating you per earnings I’ll year-to-year charges included out better benefits the laid so business. As what these these share, our our of operating and underlying isolating
a lower share to impact tax expansion, and mitigated higher you at year-to-year operating pre-tax contribution the revenue then was share headwind by as per we on constant the from growth underlying of to of our leverage actions, had per a contributed margin year-to-year operating margin, Looking which drivers of operating our was well growth at by basis, $X.XX The leverage. rate see share year-to-year. earnings A count driven growth. significant can from earnings the as a
mention as said new an per standards, our other in in is the our of two dynamics the operating item year, first one costs. the XXXX So improved start trajectory, the our January, a effectively margin share presentation this revenue effect to The expansion impact the our accounting gross good I earlier, our I underlying quarter, in we reduction with want pre-tax and recognition was growth earnings share. modest per earnings solid to we net and discussed two of in operating no margin year-to-year. show that context and expectations. of implemented operating a pension In of
Regarding to expect first minimis quarter, immaterial. revenue we adoption implications the standard to our contribution to in benefit a and full-year the of any the had de new revenue revenue, be
operating and talk financial you on results. So now impact key for have significant show the these our our performance, the me items let metrics about
As in growth geography all From the decline led offset I flat by A was year-to-year. $XX.X revenue organic. year-to-year performance which and Latin said, Brazil. revenue US in was a and Canada solid by Americas was billion, the our perspective, was the in is essentially America,
also was flat. performance year-to-year two-point This Pacific is improvement Asia over the quarter. a the fourth in
also and the revenue Our and strong they in trajectory had declined, improved year-to-year in We marked UK Europe their in Germany growth. improvement returned and to France had trajectory. while and Spain, fact,
structure. cost by performance to our is I with productivity, our gross margin our basis year-to-year a improve mix the XX-basis globally, XX though and includes by dynamics, item Looking down points, driven margin mentioned was improvement good just operating services. long-term led margin point our impact Systems associated that significant in at This
up currency, X%, a by on Our and better X%, continue actions productivity. our operating high driven by was the Without of of continued business. focus was level repositioning and our reflecting expense these, our investment, expense to
in also losses. to impact hurts line hedging past, the it As due the of we’ve the line, the discussed helps currency when expense both top and translation
expense quarter, growth. points which of lower that level drove had first another income, of a transformation growth. the I’ll so, growth. workforce points mention IP of of And And drove two also nine five of of points expense high the then, six currency a in drove activity we expense level
up rate line of million. a of and benefits Our better $XXX in the $X.XX over operating year-to-year up is include range an rate earnings significant as quarter X%, items. the by per and year-to-year. January of for XX% the the is operating The of XX%, The was impact with net the as tax discrete underlying operating those and discussed we income reflects tax well point share in X% was
cash in last back cash months. and net the That’s through performance free over GAAP metrics, $X.X income. come after generated each XXX% I’ll the twelve cash the the drivers at our we $XX.X of flow billion the walk of of to of billion nearly segments. I Looking quarter
and revenue to X%, offerings. and as our we to Now our Solutions our segments, was SaaS turning scale up platforms new continue Cognitive solutions grow
our their revenue advantage. by clients our strong Software analytics also competitive X% SaaS Within driven across offerings, and use by in platforms transactional as both Solutions analytics, for We offerings and quarter analytics on-prem led to this was security. broad-based data look saw growth growth performance. grew
our had data growth we perspective, portfolio continued like our their better a Integrated Analytics from in allow hybrid in that environments to offerings clients so And manage Systems.
our allow open-source growth that strong in data had secure, a we science new introduced where leverage environment. also offerings, data collaborative to in developers capabilities We tools
industry our talked about clients and our the quarter contributed These very to analytics, introduced within due the last platforms. new quarter. offerings the integration in growth resonating weakness in to late remember we with Also continue new quarter. scale You’ll space to are we data offerings this
Services. led focus Financial me had by another Risk and our as Promontory’s Crimes this Regulatory Let strong quarter well on quarter, Financial Watson portfolio. Financial as Services business,
quarter opportunity seeing Assistant, last Assistant the New with great and year-to-year. And in our report IBM with quarter, AI leader Platforms. enhanced gain increased We’re the business, week, strong the Promontory’s two triple technologies. real latest conversation specific conversational Watson journeys demand to we automotive AI to just share. we are around particularly Watson this only digits Bank to expertise tailored had on early Wave virtual and where remains Conversational introduced industry adopters several usage Security industries our of Watson to the synergy recognized growth accelerate client Orange with assistants, in Computing its of a continued for new examples continued AI, hospitality. platform combining as service our AutoDesk for offerings first Forrester offerings, In and as offerings like technology. such
we portfolio, cyber and There risks here the in with security positioned an important extensive environment to We especially where had and continue security talent to we data the strong our across concerns, as management our of like growth increase market is the security, data AI is orchestration. in address this capabilities obviously lot well our a driver, performance areas of SaaS portfolio. AI given revenue at of offerings good security, enhanced privacy had in are a endpoint premium. as in clients. which a And our with We GDPR is needs demand in security with
progress startups, Blockchain the Platform want our developers size of we And in beta version year. our release of stand make blockchain. Blockchain like to for weeks, to up IBM last to grown had designed any quickly companies Plan, first blockchain XXX a quarter XX provisioned. two IBM Starter a the third over continue areas active we announced blockchain month, since network. and also networks We’ve that emerging over In networks Platform last of We the in
their middleware, revenue to was the driven mission-critical so Z invest Turning good as clients Software, Z to Growth value, X%, quarter. and by Transaction growth platform. Processing was our up on continue another workloads high
pre-tax grew a Looking even by nearly segment for margin ongoing at high-value mix. year-to-year, strong investments two-point by the with flat into areas, transactional pre-tax business the income were this strategic driven in from roughly performance Margins impact quarter, profit X% was and workforce and areas offset actions.
Moving to revenue was Business down grew improvement at from currency, on the is signings. we constant Services, X% fourth quarter and Global modest Services a again in which trajectory
of Our the like across higher reflects strategic areas cloud revenue client growth value, shifts multiple imperatives with areas analytics. on-going to and
implements to our our strategy which develop most up which technologies, the Revenue Consulting help in lines value. their revenue growth industry for the year-to-year. strong our growth together emerging Digital quarter by like in grew with digital businesses, to transformation of led for ix consecutive and blockchain, backlog strategies Turning third uniquely business, was GBS first-mover IBM’s was to expertise, and is promising, clients advantage end-to-end positioned bring clients. the unlock double-digit solutions
Looking from at improvement the as signings double-digit to quarter. sequential we our to fourth Management our quarter, a modernize clients revenue a was critical incumbency down rate, leverage their Management, at help and X% one-point cloud. Application applications migrate this grew Application
three-and-a-half this of and impact year-to-year, core margin gross lines, charges. offerings, impact will was revenue Turning includes our in and the which GBS from ongoing to the the of two next operating including improvement currency. down This points our Pre-tax drive quarter, was investments generation of stabilized by our the and skills trajectory the from nearly The an about a two-point improvement rebalancing for margin workforce long-term. reflects each service leverage driven in of points enablement, reshaping improvements. in fourth pyramids profit, This mix quarter. productivity, pricing a from half-a-point
Across double value cloud exit We’ve of run imperatives strategic grew as-a-service digits, this from Services was and grew fourth nearly the improved Cloud Turning backlog momentum in the value in workloads. in performance for rate. down $X.X and improvement which was driven in XX% Technology revenue expected. to growth, the quarter signings. to this Infrastructure recognize quarter growth and and five-point in a improved now strategic profit as approximately signings level in is compared points, of TS&CP Services of with capabilities. that Services improvement backlog a grew digits, had with three-point trajectory of from good revenue our our cloud over offerings Signings clients At is trajectory quarter. This the representing enterprise execution Revenue key and segment, as $X.X signings segment XX% quarter rate the long-term this the was to revenue revenue flat, year-to-year. we and improvement now prop, last Platforms, this quarter, of two continue lot double billion. double-digit strong X%, got billion our the a year-to-year realization, Infrastructure by backlog
IT drive helping gain agility cloud. in and efficiencies through their environments clients are hybrid We
our clients entrust core us product in through Cloud support SaaS Integration single environments frameworks grow. the they XXX platform. offering, with us systems and essential of Integration multiple to clients Software rely move grew have as dynamics we continued to to hardware cloud. of new X%, part, connect across the revenue X%, TSS, offerings where architecture. along and of clients multi-vendor environments now to complexities in the disparate portfolio on Software foundational navigate due, adoption with the The Within data using continued Our regulatory to as mission-critical Private a our Technical and cycle. the portfolio, the declined growth Services Support IT with their they the over remains IBM
dynamics year-to-year, profit, Pre-tax down a points where, the margin within better year-to-year, sequential had profit segment points by and three where XXX-basis fourth improvement margin down income to mix gross for to improvements, similar with Software. impact. our a and quarter was was contemporary Turning zXX for Power, In Storage. we by basis mitigated rebalancing gross workforce Performance growth pre-tax in and consistent the Systems, most productivity decline charges point again driven strong scale as for margin XX Adjusting this systems our modernized margin workloads. had Integration GBS, grew a revenue income was from by momentum driven quarter services were this, the two-points both dynamics. we in the
expanded. Thailand services MIPS more several countries shipped The XXX% margins LinuxONE adoption the This than in quarter, grew this provider on platform XX% again a zXX our blockchain solutions. and was clients Z who its for added in broad-based. quarter, IBM across including year-to-year new We to chose growth
and cloud So, as first at Energy, the high-performance four a workloads Linux, MIPS. times of many announced this dev environments. Department cloud and shipping IBM to grew systems started These competitive of and increasingly installment Power We down broader data but to last driven growing z secure workloads, systems bring by platform advanced intensive workloads. growth, our workload a consecutive new new the revenue our clients’ to capabilities industry learning, standard, we’re transitioning pricing leadership cloud-ready hardware fast POWERX value, across and after clients. cloud-enabled centers environment quarter, in analytics, also consecutive of POWERX even supercomputers was all four quarters by artificial and with as high designed we address cloud traditional the driven continuing remains design for for placement quarter, including the offerings. the fourth systems designed of to workloads. late in an public the pressures, week, data scalable though that and in I single-frame our for second machine entry continued set X%, in intelligence, allows These US expanded specifically provide critical Overall, quarter. grew mainframe and cloud MIPS and computing, environments quarter level managing continues Z With our this started for margins. private and blockchain, emerging Its our payments. easy entry AIX, like ops to Linux is vital into environments. portfolio we with Power And complex Storage AI latest our deployments. platform we IBM zXX of the up power UNIX, four and we deliver
sales what we Software impacted just some execution had Defined are which here Software. element Object value performance. had about Clearly, Cloud strong Transaction in and Storage software. of growth Processing storage. talking in hardware of challenges to reported seen Remember also quarter, the shift is which we In this the We Storage, some we’ve are
margin Looking at higher was gross Systems a items Pre-tax Without to strength actions. that, five-point margin the flat expense. points and expanded for gross relative down including cost referenced in the Systems, roughly margin year-to-year, significant margin year-to-year, I associated in and profit our earlier was due with about four for impact with cost the the efficiency business even in impact nearly charge cost.
So, of underlying we performance innovation needs. in support our successfully evolving expanded in workload margins, while clients our delivering
flow, from $XXX flow year-to-year. receivables we and million expenditures, capital another our financing of up cash generated free generated we another billion of cash which quarter. to We had operations, Turning strong $X.X investing billion cash is $X.X after and in balance excluding sheet,
the to track strong performance flow at our over very approximately expectation remains months. of realization achieve $XX XXX% on year XX full free puts cash cash us nearly last of billion. Our This
mitigated talked cash back Our by Both working January. headwinds, performance in driven in we CapEx. higher taxes the higher quarter capital, and were about in partially by results
We to of of quarter, in remaining almost quarter. million billion billion buyback $X.X shareholders, at X in uses in billion the shares $X back Looking we dividends. bought returned authorization at including had end our and the our cash $X.X the
business. quarter About total the was in financing sheet total $XX.X two-thirds with On highlights, our in we the debt cash debt you billion billion. of balance can ended of see and was support our $XX.X
point investment leverage remains quality strong is X of consistent the than to a receivables credit Our financing at ago. with better and XX% December grade, year X, financing and that’s a at our
balance with need got quarter for on in the track is our sheet strong So we flexibility strong, flow, year. we’ve and a cash we’re
summary quarter our they address building and make year skills, the me and enterprise go comments our what we on what let a and Q&A. our before few been portfolio, need transforming to value. to So clients We’ve operating our the model,
and we our Platforms. expertise to to that GBS, Our the in journey in points the margin quarter in together reinforce actions results of their to them innovative over And industry from clients journey it’s our fourth basis quarters value to our few integration productivity. was to technologies they the with trajectory The operating And cloud. Cognitive XXX value to AI, help performance our trajectory compared operating improved coming We of half took. privacy. basis in by their Services the points We on their year-to-year Systems when Solutions the and we protection in with In Technology gross data mix first quarter we our in progress year. better Cloud built the for our of improved and grow revenue revenue. second the approach adjust year-to-year better we broad-based improved continued last trajectory their our you and margin, leverage from made the XX by improvement
With our and development. in like at together, All ahead and about the net blockchain, investments, cloud expect of to perspective, that’s in operating continue a with To first XXXX. this XX% $XX.XX of we we performance our our skills half. point share, share in earnings of continued first that and earnings put to in We about half free delever our revenue, least skew emerging per that one in more cash architecture, areas operating grew flow. income, in operating per talent broadly
to this that, going on back operational a delivering to let Patricia focused with start and turn And consistent performance. me good the so, Q&A. was year, to we’re And forward, off kick it the
