Executive Summary

• IBM reported 2Q19 revenues of $19.16 billion, down 4.2% year over year and in line with the consensus estimate. Adjusted EPS was $3.17, up 3.0% from the year-ago quarter and beating consensus of $3.08.
• Revenues grew 3.2% year over year in the cloud and cognitive software segment, grew 0.5% in the global business services segment and declined in the global technology services, systems, global financing and other segments.
• IBM commented that it remained on track to meet its guidance for 2019 adjusted EPS of $13.90 through the second quarter and plans to update guidance for the Red Hat acquisition on August 2.