IBM International Business Machines (IBM) Q1 FY25 earnings call
IBM delivered a strong Q1 FY25, surpassing expectations for revenue, profitability, and cash flow, driven by its focused hybrid cloud and AI strategy. The company maintained its full-year guidance for accelerating revenue growth and free cash flow, despite a fluid macroeconomic environment. Management highlighted the success of its Software segment, the upcoming z17 mainframe launch, and ongoing productivity initiatives as key drivers for future performance.
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IBM operating KPIs by quarter
| KPI | This call Mar 2025 Q1 FY25 | Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Annual recurring revenue (ARR) OpenShift | $1.5BAnd OpenShift is now at $1.5 billion ARR, growing about 25%.Source: earnings call transcript | $2.2BOpenShift ARR is now $2.2 billion with strong growth, reflecting demand of our containerization and virtualization products, where we now have about $680 million of contracts signed since early 2024.Source: earnings call transcript | $2.4BOpenShift is now $2.4 billion ARR business, with growth accelerating to more than 30%.Source: earnings call transcript | +9.1% |
| Annual recurring revenue (ARR) Software | $21.7BSoftware's annual recurring revenue grew to $21.7 billion, up 11% since last year.Source: earnings call transcript | $24.6BThis revenue grew nicely in the quarter, and our ARR was $24.6 billion, up 8% since last year.Source: earnings call transcript | $24.9BThis performance was driven by our high-value annual recurring revenue base, which grew 8% to $24.9 billion.Source: earnings call transcript | +1.2% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.