International Business Machines Corporation · NYSE:IBM
International Business Machines — Q2 2025 Earnings Presentation
12 slides from International Business Machines's earnings presentation, Jul 23, 2025
Slide 1: Introduction
IBM 2Q25 Earnings Prepared Remarks Introduction Thank you. I’d like to welcome you to IBM’s second quarter 2025 earnings presentation. I’m Olympia McNerney, and I’m here today with Arvind Krishna, IBM’s Chairman, President and Chief Executive Officer, and Jim Kavanaugh, IBM’s Senior Vice President a
Slide 2: CEO Perspective
IBM 2Q25 Earnings Prepared Remarks CEO Perspective Thank you for joining us today. In the second quarter, we delivered solid results across revenue, profit, and cash, exceeding our expectations. Our performance this quarter was led by Software and Infrastructure, as demand remains high for technolog
Slide 3: AI momentum, Infrastructure and Client Zero
IBM 2Q25 Earnings Prepared Remarks with joint Ansible and Terraform product synergies. Infrastructure was up 11%, driven by a very strong start to z17. The new IBM Z is an embodiment of the hybrid cloud and AI capabilities we bring to clients. IBM Z continues to deliver on its core strengths: AI, se
Slide 4: Partner collaborations and watsonx capabilities
IBM 2Q25 Earnings Prepared Remarks or deepened collaborations with Oracle, Box, AWS, Salesforce, Microsoft, EY, Finastra, and WPP. Each is aimed at embedding watsonx into core business workflows. At Think 2025, we introduced new capabilities across our portfolio. We launched new features for watsonx
Slide 5: IBM Z, Power11, Quantum and DataStax acquisition
IBM 2Q25 Earnings Prepared Remarks watsonx Code Assistant for Z and watsonx Assistant for Z to run natively on z17. As more than 70% of IBM Z clients continue to expand or maintain capacity, our software stack is bringing even more innovation to IBM Z including watsonx Code Assistant for Z, watsonx.
Slide 6: Financial Highlights
IBM 2Q25 Earnings Prepared Remarks Financial Highlights Thanks Arvind. In the second quarter, we delivered $17.0 billion in revenue, $4.7 billion of Adjusted EBITDA, $3.2 billion of operating pre-tax income and operating earnings per share of $2.80. And through the first half we generated $4.8 billi
Slide 7: Infrastructure segment results
IBM 2Q25 Earnings Prepared Remarks Infrastructure, IBM Z was up 67%, reflecting early strength in our z17 program as AI use cases are resonating strongly with clients. The success of our launch highlights the enduring nature of the IBM Z platform through the value of our continued innovation around
Slide 8: Consulting signings and profitability margins
IBM 2Q25 Earnings Prepared Remarks renewals impacted our in-period signings. However, we’re seeing an improvement in strategic wins with new clients and expanding engagements with existing clients. Now turning to profitability. During the quarter, the strength of our portfolio mix and productivity e
Slide 9: Liquidity, debt and capital allocation
IBM 2Q25 Earnings Prepared Remarks Our strong liquidity position, solid investment grade balance sheet, and disciplined capital allocation policy remain a focus for us. We ended the quarter with cash of $15.5 billion, which is up over $700 million from the end of 2024 including spending $7.8 billion
Slide 10: Summary
IBM 2Q25 Earnings Prepared Remarks Summary Now, let me talk about what we are seeing going forward. We delivered strong performance in the first half across revenue, operating margin expansion, profitability and earnings per share and free cash flow. The strength of our portfolio, investment in inno
Slide 11: Productivity savings and margin expectations
IBM 2Q25 Earnings Prepared Remarks environment, we continue to be prudently cautious on Consulting’s growth contribution to IBM this year. As I mentioned earlier, we have been accelerating our productivity initiatives, which is fueling our flywheel for growth and margin expansion. We are early in th
Slide 12: Closing
IBM 2Q25 Earnings Prepared Remarks Closing Thank you, Jim. Before we begin the Q&A, I’d like to mention a couple of items. First, supplemental information is provided at the end of the presentation. And then second, as always, I’d ask you to refrain from multi-part questions. Operator, let’s please
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