International Business Machines (IBM) FY2018 results: revenue $79.6 billion, up 0.6% on the year
International Business Machines Corp. (IBM) reported revenue of $79.6 billion for fiscal 2018, the year ended 31 December 2018, up 0.6% on the year before. Net income was $8.7 billion, up 51.7%, and diluted earnings per share $9.52. The figures are the company's own, from the 10-K it filed with the SEC on 26 February 2019.
Revenue
$79.6 billion
+0.6% on the year
FY2011FY2018
Operating margin
n/a
FY2011FY2018
Net income
$8.7 billion
+51.7% on the year
FY2011FY2018
Diluted EPS
$9.52
+55.0% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
79,591
79,139
79,919
+0.6%
Cost of revenue
42,655
42,196
41,403
+1.1%
Gross profit
36,936
36,943
38,516
-0.0%
Gross margin
46.4%
46.7%
48.2%
Research and development
5,379
5,590
5,726
-3.8%
Selling, general and administrative
19,366
19,680
20,869
-1.6%
Interest expense
723
615
630
+17.6%
Pre-tax income
11,342
11,400
12,330
-0.5%
Income tax
2,619
5,642
449
-53.6%
Effective tax rate
23.1%
49.5%
3.6%
Net income
8,728
5,753
11,872
+51.7%
Net margin
11.0%
7.3%
14.9%
Diluted EPS
$9.52
$6.14
$12.38
+55.0%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
15,247
16,724
17,084
-8.8%
Capital expenditure
3,395
3,229
3,567
+5.1%
Free cash flow
11,852
13,495
13,517
-12.2%
Free cash flow margin
14.9%
17.1%
16.9%
Cash from investing
-4,913
-7,081
-10,928
Cash from financing
-10,469
-6,418
-5,917
Depreciation and amortisation
4,480
4,541
4,381
-1.3%
Share-based compensation
510
534
544
-4.5%
Buybacks
4,443
4,340
3,502
+2.4%
Dividends paid
5,666
5,506
5,256
+2.9%
Dividend per share
$6.21
$5.90
$5.50
+5.3%
Diluted shares, weighted
916m
937m
959m
-2.2%
Shares outstanding at period end
892m
922m
946m
-3.2%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
16,796
17,594
18,246
-4.5%
Non-controlling interest
134
131
146
+2.3%
Debt
45,812
46,824
42,168
-2.2%
Other liabilities
60,640
60,807
56,910
-0.3%
Total liabilities and equity
123,382
125,356
117,470
-1.6%
Fixed assets
10,792
11,116
10,830
-2.9%
Goodwill
36,265
36,788
36,199
-1.4%
Intangible assets
3,087
3,742
4,688
-17.5%
Investments
618
619
709
-0.2%
Cash and equivalents
11,379
11,972
7,826
-5.0%
Receivables
7,432
8,928
9,182
-16.8%
Inventory
1,682
1,583
1,553
+6.3%
Other assets
52,127
50,608
46,483
+3.0%
Total assets
123,382
125,356
117,470
-1.6%
10-K for the year ended 31 December 2018, filed 26 February 2019: the filing.