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IBM RELEASES FIRST-QUARTER RESULTS

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Results exceed expectations driven by strong Software revenue growth, significant gross margin expansion and solid free cash flow

ARMONK, N.Y., April 23, 2025 /PRNewswire/ — IBM (NYSE: IBM) today announced first-quarter 2025 earnings results.

“We exceeded expectations for revenue, profitability and free cash flow in the quarter, led by strength across our Software portfolio. There continues to be strong demand for generative AI and our book of business stands at more than $6 billion inception-to-date, up more than $1 billion in the quarter,” said Arvind Krishna, IBM chairman, president and chief executive officer. “We remain bullish on the long-term growth opportunities for technology and the global economy. While the macroeconomic environment is fluid, based on what we know today, we are maintaining our full-year expectations for revenue growth and free cash flow.” 

First-Quarter Highlights

Revenue
– Revenue of $14.5 billion, up 1 percent, up 2 percent at constant currency
– Software revenue up 7 percent, up 9 percent at constant currency
– Consulting revenue down 2 percent, flat at constant currency
– Infrastructure revenue down 6 percent, down 4 percent at constant currency
Profit
– Gross Profit Margin: GAAP: 55.2 percent, up 170 basis points; Operating (Non-GAAP): 56.6 percent, up 190 basis points
– Pre-Tax Income Margin: GAAP: 8.0 percent, up 50 basis points; Operating (Non-GAAP): 12.0 percent, up 50 basis points
Cash Flow
– Net cash from operating activities of $4.4 billion; free cash flow of $2.0 billion

FIRST-QUARTER 2025 INCOME STATEMENT SUMMARY

 

Revenue

 

Gross

Profit

 
 

Gross

Profit

Margin

 
 

Pre-tax

Income

 

Pre-tax

Income

Margin

 

Net

Income

 

Diluted

Earnings

Per Share

GAAP from

Continuing

Operations

$   14.5 B

 
 

$   8.0 B

 
 

55.2

%

 

$    1.2 B

 
 

8.0

%

 

$     1.1 B

 
 

$     1.12

 

Year/Year

1

%(1)

 

4

%

 

1.7

Pts

 

8

%

 

0.5

Pts

 

(33)

%(2)

 

(34)

%

Operating

(Non-GAAP)

 
 
 

$   8.2 B

 
 

56.6

%

 

$    1.7 B

 
 

12.0

%

 

$     1.5 B

 
 

$     1.60

 

Year/Year

 
 
 

4

%

 

1.9

Pts

 

5

%

 

0.5

Pts

 

(3)

%

 

(5)

%

(1)  2% at constant currency.

(2) GAAP 2024 net income includes a benefit from income taxes due to the resolution of certain tax audit matters.

“Revenue growth, once again led by Software, combined with our productivity initiatives, drove significant gross margin expansion and operating leverage in the quarter,” said James Kavanaugh, IBM senior vice president and chief financial officer. “With our focus on the fundamentals of our business, we continue to maintain a strong liquidity position and yield solid free cash flow. This enables us to both invest in our business and return value to shareholders through dividends.”

Segment Results for First Quarter

Software — revenues of $6.3 billion, up 7 percent, up 9 percent at constant currency:
– Hybrid Cloud (Red Hat) up 12 percent, up 13 percent at constant currency
– Automation up 14 percent, up 15 percent at constant currency
– Data up 5 percent, up 7 percent at constant currency
– Transaction Processing flat, up 2 percent at constant currency

Consulting — revenues of $5.1 billion, down 2 percent, flat at constant currency:
– Strategy and Technology down 3 percent, down 1 percent at constant currency
– Intelligent Operations down 2 percent, flat at constant currency

Infrastructure — revenues of $2.9 billion, down 6 percent, down 4 percent at constant currency:
– Hybrid Infrastructure down 9 percent, down 7 percent at constant currency
      — IBM Z down 15 percent, down 14 percent at constant currency
      — Distributed Infrastructure down 5 percent, down 4 percent at constant currency
– Infrastructure Support down 3 percent, flat at constant currency

Financing — revenues of $0.2 billion, down 1 percent, up 2 percent at constant currency

Cash Flow and Balance Sheet

In the first quarter, the company generated net cash from operating activities of $4.4 billion, up $0.2 billion year to year. IBM’s free cash flow was $2.0 billion, up $0.1 billion year to year. The company returned $1.5 billion to shareholders in dividends in the first quarter and invested $7.1 billion in acquisitions, including the acquisition of HashiCorp.

IBM ended the first quarter with $17.6 billion of cash, restricted cash and marketable securities, up $2.8 billion from year-end 2024. Debt, including IBM Financing debt of $10.0 billion, totaled $63.3 billion, up $8.3 billion year to date.

Expectations

Revenue: The company continues to expect full-year constant currency revenue growth of at least 5 percent. At current foreign exchange rates, currency is expected to be about a one to one-and-a-half-point tailwind to growth for the year.
– The company expects second-quarter revenue to be in the range of $16.40 billion to $16.75 billion.
Free cash flow: The company continues to expect about $13.5 billion in free cash flow for the full year.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; a failure of the company’s innovation initiatives; damage to the company’s reputation; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; the company’s ability to successfully manage acquisitions, alliances and divestitures, including integration challenges, failure to achieve objectives, the assumption or retention of liabilities and higher debt levels; fluctuations in financial results; impact of local legal, economic, political, health and other conditions; the company’s failure to meet growth and productivity objectives; ineffective internal controls; the company’s use of accounting estimates; impairment of the company’s goodwill or amortizable intangible assets; the company’s ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product and service quality issues; the development and use of AI and generative AI, including the company’s increased offerings and use of AI-based technologies; impacts of business with government clients; reliance on third party distribution channels and ecosystems; cybersecurity, privacy, and AI considerations; adverse effects related to climate change and other environmental matters; tax matters; legal proceedings and investigatory risks; the company’s pension plans; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Qs, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference.

Any forward-looking statement in this release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements.

Presentation of Information in this Press Release

For generative AI, book of business includes Software transactional revenue, SaaS Annual Contract Value and Consulting signings. The generative AI book of business is further defined within Exhibit 99.2 in the Form 8-K that includes this press release.

In an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information, which management believes provides useful information to investors:

IBM results —

adjusting for currency (i.e., at constant currency);
presenting operating (non-GAAP) earnings per share amounts and related income statement items;
free cash flow;
net cash from operating activities excluding IBM Financing receivables;
adjusted EBITDA.

The rationale for management’s use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8-K that includes this press release and is being submitted today to the SEC.

Conference Call and Webcast

IBM’s regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/earnings-1q25. Presentation charts will be available shortly before the Webcast.

Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).

Contact:       IBM
                     Sarah Meron, 347-891-1770
                     sarah.meron@ibm.com 
    
                     Tim Davidson, 914-844-7847
                     tfdavids@us.ibm.com

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; Dollars in millions except per share amounts)

 
 

Three Months Ended
March 31,

 
 

2025

 
 

2024

 

REVENUE BY SEGMENT

 
 
 
 
 

Software

$                   6,336

 
 

$                   5,899

 

Consulting

5,068

 
 

5,186

 

Infrastructure

2,886

 
 

3,076

 

Financing

191

 
 

193

 

Other

61

 
 

108

 

TOTAL REVENUE

14,541

 
 

14,462

 
 
 
 
 
 
 

GROSS PROFIT

8,031

 
 

7,742

 
 
 
 
 
 
 

GROSS PROFIT MARGIN

 
 
 
 
 

Software

83.6

%

 

82.4

%

Consulting

27.3

%

 

25.3

%

Infrastructure

52.8

%

 

54.2

%

Financing

45.8

%

 

48.5

%

 
 
 
 
 
 

TOTAL GROSS PROFIT MARGIN

55.2

%

 

53.5

%

 
 
 
 
 
 

EXPENSE AND OTHER INCOME

 
 
 
 
 

SG&A

4,886

 
 

4,974

 

R&D

1,950

 
 

1,796

 

Intellectual property and custom development income

(253)

 
 

(216)

 

Other (income) and expense

(165)

 
 

(317)

 

Interest expense

455

 
 

432

 

TOTAL EXPENSE AND OTHER INCOME

6,873

 
 

6,669

 
 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

1,158

 
 

1,074

 

Pre-tax margin

8.0

%

 

7.4

%

Provision for/(Benefit from) income taxes (1)

103

 
 

(502)

 

Effective tax rate (1)

8.9

%

 

(46.7)

%

 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

$                   1,054

 
 

$                   1,575

 
 
 
 
 
 
 

DISCONTINUED OPERATIONS

 
 
 
 
 

Income from discontinued operations, net of taxes

1

 
 

30

 
 
 
 
 
 
 

NET INCOME

$                   1,055

 
 

$                   1,605

 
 
 
 
 
 
 

EARNINGS PER SHARE OF COMMON STOCK

 
 
 
 
 

Assuming Dilution

 
 
 
 
 

Continuing Operations

$                      1.12

 
 

$                      1.69

 

Discontinued Operations

$                      0.00

 
 

$                      0.03

 

TOTAL

$                      1.12

 
 

$                      1.72

 
 
 
 
 
 
 

Basic

 
 
 
 
 

Continuing Operations

$                      1.14

 
 

$                      1.72

 

Discontinued Operations

$                      0.00

 
 

$                      0.03

 

TOTAL

$                      1.14

 
 

$                      1.75

 
 
 
 
 
 
 

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (M’s)

 
 
 
 
 

Assuming Dilution

945.4

 
 

933.4

 

Basic

928.0

 
 

917.2

 

____________________

(1) 2024 includes a benefit from income taxes due to the resolution of certain tax audit matters.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

 

(Unaudited)

 

(Dollars in Millions)

 

At

March 31,
2025

 

At

December 31,
2024

ASSETS:

 
 
 
 

Current Assets:

 
 
 
 

Cash and cash equivalents

 

$                   11,035

 

$                   13,947

Restricted cash

 

126

 

214

Marketable securities

 

6,430

 

644

Notes and accounts receivable – trade, net

 

5,857

 

6,804

Short-term financing receivables, net

 

5,715

 

7,159

Other accounts receivable, net

 

897

 

947

Inventories

 

1,431

 

1,289

Deferred costs

 

1,074

 

959

Prepaid expenses and other current assets

 

2,770

 

2,520

Total Current Assets

 

35,336

 

34,482

 
 
 
 
 

Property, plant and equipment, net

 

5,742

 

5,731

Operating right-of-use assets, net

 

3,323

 

3,197

Long-term financing receivables, net

 

4,920

 

5,353

Prepaid pension assets

 

7,670

 

7,492

Deferred costs

 

769

 

788

Deferred taxes

 

7,594

 

6,978

Goodwill

 

66,065

 

60,706

Intangibles, net

 

12,392

 

10,660

Investments and sundry assets

 

1,856

 

1,787

Total Assets

 

$                145,667

 

$                137,175

 
 
 
 
 

LIABILITIES:

 
 
 
 

Current Liabilities:

 
 
 
 

Taxes

 

$                      1,573

 

$                      2,033

Short-term debt

 

6,913

 

5,089

Accounts payable

 

3,585

 

4,032

Deferred income

 

15,057

 

13,907

Operating lease liabilities

 

798

 

768

Other liabilities

 

7,179

 

7,313

Total Current Liabilities

 

35,106

 

33,142

 
 
 
 
 

Long-term debt

 

56,371

 

49,884

Retirement-related obligations

 

9,536

 

9,432

Deferred income

 

3,844

 

3,622

Operating lease liabilities

 

2,753

 

2,655

Other liabilities

 

11,105

 

11,048

Total Liabilities

 

118,714

 

109,783

 
 
 
 
 

EQUITY:

 
 
 
 

IBM Stockholders’ Equity:

 
 
 
 

Common stock

 

61,913

 

61,380

Retained earnings

 

150,703

 

151,163

Treasury stock – at cost

 

(170,160)

 

(169,968)

Accumulated other comprehensive income/(loss)

 

(15,575)

 

(15,269)

Total IBM Stockholders’ Equity

 

26,880

 

27,307

 
 
 
 
 

Noncontrolling interests

 

72

 

86

Total Equity

 

26,953

 

27,393

 
 
 
 
 

Total Liabilities and Equity

 

$                145,667

 

$                137,175

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW

(Unaudited)

 
 
 

Three Months Ended
March 31,

(Dollars in Millions)

 

2025

 

2024

Net Income from Operations

 

$                     1,055

 

$                     1,605

Depreciation/Amortization of Intangibles (1)

 

1,177

 

1,132

Stock-based Compensation

 

401

 

320

Operating assets and liabilities/Other, net (2)

 

(350)

 

(785)

IBM Financing A/R

 

2,087

 

1,897

Net Cash Provided by Operating Activities

 

$                     4,370

 

$                     4,168

 
 
 
 
 

Capital Expenditures, net of payments & proceeds

 

(321)

 

(361)

Divestitures, net of cash transferred

 

(1)

 

703

Acquisitions, net of cash acquired

 

(7,098)

 

(82)

Marketable Securities / Other Investments, net

 

(5,559)

 

(4,469)

Net Cash Provided by/(Used in) Investing Activities

 

$               (12,979)

 

$                  (4,210)

 
 
 
 
 

Debt, net of payments & proceeds

 

7,092

 

3,382

Dividends

 

(1,549)

 

(1,522)

Financing – Other

 

(100)

 

17

Net Cash Provided by/(Used in) Financing Activities

 

$                     5,443

 

$                     1,877

 
 
 
 
 

Effect of Exchange Rate changes on Cash

 

167

 

(159)

Net Change in Cash, Cash Equivalents and Restricted Cash

 

$                  (2,999)

 

$                     1,676

____________________

(1)  Includes operating lease right-of-use assets amortization.

(2)  2024 includes the reduction of tax reserves.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended

March 31,

(Dollars in Billions)

 

2025

 

2024

 

Yr/Yr

Net Income as reported (GAAP)

 

$           1.1

 

$           1.6

 

$         (0.5)

Less: Income from discontinued operations, net of tax

 

0.0

 

0.0

 

0.0

Income from continuing operations

 

1.1

 

1.6

 

(0.5)

Provision for/(Benefit from) income taxes from continuing ops.

 

0.1

 

(0.5)

 

0.6

Pre-tax income from continuing operations (GAAP)

 

1.2

 

1.1

 

0.1

Non-operating adjustments (before tax)

 
 
 
 
 
 

Acquisition-related charges (1)

 

0.6

 

0.5

 

0.1

Non-operating retirement-related costs/(income)

 

0.0

 

0.1

 

(0.1)

 
 
 
 
 
 
 

Operating (non-GAAP) pre-tax income from continuing ops.

 

1.7

 

1.7

 

0.1

 
 
 
 
 
 
 

Net interest expense

 

0.3

 

0.2

 

0.0

Depreciation/Amortization of non-acquired intangible assets

 

0.7

 

0.7

 

0.0

Stock-based compensation

 

0.4

 

0.3

 

0.1

Workforce rebalancing charges

 

0.3

 

0.4

 

(0.1)

Corporate (gains) and charges (2)

 

0.0

 

(0.2)

 

0.2

 
 
 
 
 
 
 

Adjusted EBITDA

 

$           3.4

 

$           3.0

 

$           0.4

___________________

(1) Primarily consists of amortization of acquired intangible assets.

(2) Corporate (gains) and charges primarily consists of unique corporate actions such as gains on divestitures.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

 
 
 

Three Months Ended March 31, 2025

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                       6,336

 
 

$                        5,068

 
 

$                        2,886

 
 

$                            191

 

Segment Profit

 

$                       1,847

 
 

$                           558

 
 

$                           248

 
 

$                              69

 

Segment Profit Margin

 

29.1

%

 

11.0

%

 

8.6

%

 

35.8

%

Change YTY Revenue

 

7.4

%

 

(2.3)

%

 

(6.2)

%

 

(0.8)

%

Change YTY Revenue – Constant Currency

 

9.0

%

 

(0.5)

%

 

(4.3)

%

 

2.2

%

 
 
 

Three Months Ended March 31, 2024

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                       5,899

 
 

$                        5,186

 
 

$                        3,076

 
 

$                            193

 

Segment Profit

 

$                       1,500

 
 

$                           424

 
 

$                           311

 
 

$                              92

 

Segment Profit Margin

 

25.4

%

 

8.2

%

 

10.1

%

 

47.7

%

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; Dollars in millions except per share amounts)

 
 

Three Months Ended March 31, 2025

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-

GAAP)

 

Gross Profit

$         8,031

 
 

$                             201

 
 

$                                     —

 
 

$                           —

 
 

$              8,232

 

Gross Profit Margin

55.2

%

 

1.4

pts

 

pts

 

pts

 

56.6

%

SG&A

$         4,886

 
 

$                           (353)

 
 

$                                     —

 
 

$                           —

 
 

$              4,533

 

R&D

1,950

 
 

(4)

 
 

 
 

 
 

1,946

 

Other (Income) & Expense

(165)

 
 

 
 

(23)

 
 

 
 

(187)

 

Total Expense & Other (Income)

6,873

 
 

(357)

 
 

(23)

 
 

 
 

6,494

 

Pre-tax Income from Continuing Operations

1,158

 
 

557

 
 

23

 
 

 
 

1,738

 

Pre-tax Income Margin from Continuing

Operations

8.0

%

 

3.8

pts

 

0.2

pts

 

pts

 

12.0

%

Provision for/(Benefit from) Income Taxes (3)

$            103

 
 

$                             128

 
 

$                                   (12)

 
 

$                            2

 
 

$                 221

 

Effective Tax Rate

8.9

%

 

4.5

pts

 

(0.8)

pts

 

0.1

pts

 

12.7

%

Income from Continuing Operations

$         1,054

 
 

$                             429

 
 

$                                    35

 
 

$                           (2)

 
 

$              1,517

 

Income Margin from Continuing Operations

7.3

%

 

3.0

pts

 

0.2

pts

 

0.0

pts

 

10.4

%

Diluted Earnings Per Share: Continuing

Operations

$           1.12

 
 

$                            0.45

 
 

$                                 0.04

 
 

$                       0.00

 
 

$                1.60

 
 
 
 

Three Months Ended March 31, 2024

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts (4)

 
 

Operating

(Non-

GAAP)

 

Gross Profit

$         7,742

 
 

$                             170

 
 

$                                     —

 
 

$                       —

 
 

$              7,913

 

Gross Profit Margin

53.5

%

 

1.2

pts

 

pts

 

pts

 

54.7

%

SG&A

$         4,974

 
 

$                            (268)

 
 

$                                     —

 
 

$                       —

 
 

$              4,706

 

R&D

1,796

 
 

 
 

 
 

 
 

1,796

 

Other (Income) & Expense

(317)

 
 

(50)

 
 

(96)

 
 

 
 

(463)

 

Total Expense & Other (Income)

6,669

 
 

(318)

 
 

(96)

 
 

 
 

6,255

 

Pre-tax Income from Continuing Operations

1,074

 
 

488

 
 

96

 
 

 
 

1,658

 

Pre-tax Income Margin from Continuing

Operations

7.4

%

 

3.4

pts

 

0.7

pts

 

pts

 

11.5

%

Provision for/(Benefit from) Income Taxes (3)

$           (502)

 
 

$                            142

 
 

$                                      5

 
 

$                    448

 
 

$                  94

 

Effective Tax Rate

(46.7)

%

 

22.3

pts

 

3.0

pts

 

27.0

pts

 

5.6

%

Income from Continuing Operations

$         1,575

 
 

$                            346

 
 

$                                    91

 
 

$                  (448)

 
 

$             1,564

 

Income Margin from Continuing Operations

10.9

%

 

2.4

pts

 

0.6

pts

 

(3.1)

pts

 

10.8

%

Diluted Earnings Per Share: Continuing

Operations

$           1.69

 
 

$                           0.37

 
 

$                                 0.10

 
 

$                 (0.48)

 
 

$               1.68

 

____________________

(1)   Includes amortization of acquired intangible assets, in-process R&D, transaction costs, applicable retention, restructuring and related expenses, tax charges related to

       acquisition integration and pre-closing charges, such as financing costs. 2024 also includes a loss of $50 million on foreign exchange derivative contracts entered into by the

       company prior to the acquisition of StreamSets and webMethods from Software AG.

(2)   Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan curtailments/settlements and

       pension insolvency costs and other costs.

(3)   The tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the GAAP pre-tax income.

(4)   2024 includes a benefit from income taxes due to the resolution of certain tax audit matters.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO FREE CASH FLOW RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended
March 31,

(Dollars in Millions)

 

2025

 

2024

Net Cash from Operations per GAAP

 

$            4,370

 

$            4,168

 
 
 
 
 

Less: change in IBM Financing receivables

 

2,087

 

1,897

 
 
 
 
 

Net cash from operating activities excl. IBM Financing receivables

 

2,283

 

2,271

 
 
 
 
 

Capital Expenditures, net

 

(321)

 

(361)

 
 
 
 
 

Free Cash Flow

 

$            1,962

 

$            1,910

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended
March 31,

(Dollars in Billions)

 

2025

 

2024

Net Cash Provided by Operating Activities

 

$           4.4

 

$             4.2

 
 
 
 
 

Add:

 
 
 
 

Net interest expense

 

0.3

 

0.2

Provision for/(Benefit from) income taxes from continuing operations

 

0.1

 

(0.5)

 
 
 
 
 

Less change in:

 
 
 
 

Financing receivables

 

2.1

 

1.9

Other assets and liabilities/other, net (1)

 

(0.7)

 

(1.0)

 
 
 
 
 

Adjusted EBITDA

 

$           3.4

 

$             3.0

____________________

(1)    Other assets and liabilities/other, net mainly consists of Operating assets and liabilities/Other, net in the Cash Flow chart, workforce 

         rebalancing charges, non-operating impacts and corporate (gains) and charges.

 

 

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SOURCE IBM

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Yiren Digital Accelerates Operating Efficiency Through AI Agent Deployment

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Broader AI adoption improves productivity across asset recovery and enterprise operations

BEIJING, July 23, 2026 /PRNewswire/ — Yiren Digital Ltd. (NYSE: YRD) (“Yiren Digital” or the “Company”), a leading company specializing in financial technology and artificial intelligence innovation across multiple industries in China and global markets, today announced measurable operating efficiency improvements as it continues to deploy AI agents across core enterprise workflows. Broader AI adoption is reducing manual intervention, increasing workforce productivity and creating greater operating leverage by automating high-volume processes across multiple business functions.

These deployments are a key component of Yiren Digital’s “All-in-AI” strategy and its broader transition from AI-assisted productivity toward agent-driven execution. By embedding AI agents into core workflows, the Company is creating reusable operating capabilities that can be deployed across its businesses, supporting greater efficiency and reducing the cost of extending automation into new functions.

“Our objective is not simply to automate individual tasks, but to fundamentally improve how work is performed across the enterprise,” said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. “As AI agents take on more of our high-volume, demanding workflows, the productivity gains are becoming a structural part of how we run the business, not a one-time efficiency project. We will continue to deepen AI integration across our existing businesses while extending reusable capabilities into additional verticals.”

The AI deployments are supported by the Company’s proprietary enterprise AI architecture, including MagiCube 2.0, its upgraded multi-agent platform. The platform provides common infrastructure for agents deployed across marketing, customer service, capital operations, risk management, compliance and research and development, with more than 10 reusable foundational capabilities, supporting enterprise-wide execution.

Measurable Operating Impact

Lower manual intervention: The human handling rate in asset-recovery operations decreased from 45.0% to 24.9%, representing a 20.1-percentage-point decline, an approximately 44.6% relative reduction in manual intervention.

Higher staff productivity: The number of service tickets handled per asset-recovery staff member within the applicable Month 1 workflow increased from 358 to 525, an improvement of approximately 47%.

Expanded agent adoption: AI agents accounted for 81% of service tickets within eligible Day 1 asset-recovery workflows in 2025, up from 50% in 2024. The Company also deployed AI agents selectively in later-stage workflows, accounting for 20% of eligible service tickets at Day 4, 14% at Day 16 and 20% at Month 2. Each percentage is calculated separately for the relevant stage and should not be interpreted as a sequential adoption trend.

Enterprise-wide reuse: MagiCube 2.0 supports agent deployment across six enterprise functions, allowing the Company to apply common AI capabilities to a broader range of regulated and high-volume workflows.

Enterprise-scale AI execution: The Fengchao AI voice agent processes approximately 1,500 hours of real-time speech-to-text activity each day. The LingShu intelligent marketing platform executes more than 1,700 tasks daily and generates individualized communication content in an average of 0.6 seconds.

Building Enterprise Operating Leverage Through AI

As AI deployment expands across the enterprise, Yiren Digital is increasingly shifting repetitive, high-volume tasks from human-assisted processes toward agent-driven execution. By combining AI agents with centralized orchestration and governance, the Company is improving operating consistency, strengthening workforce productivity and creating reusable capabilities that increase operating leverage as AI is deployed across additional business functions.

Yiren Digital plans to continue expanding agent-driven workflows across its credit and insurance operations, as part of its ongoing All-in-AI strategy, while strengthening the shared architecture and governance that support enterprise-wide AI deployment. These capabilities are designed to scale across multiple use cases and provide a foundation for the Company’s broader expansion into AI application-layer opportunities, including AI entertainment and AI-assisted language learning.

About Yiren Digital

Yiren Digital Ltd. is a leading company specializing in financial technology and artificial intelligence innovation across multiple industries in China and global markets. The Company leverages advanced artificial intelligence and emerging technologies to enhance customer experience, optimize capital efficiency, and expand financial inclusion. Following the regulatory filing of its in-house developed Large Language Model Zhiyu, and the significant enhancement of its MagiCube Agent platform, Yiren Digital is establishing a new growth engine to accelerate its evolution into an AI-native, multi-industry operating platform extending beyond traditional financial services. For more information, please visit https://ir.yiren.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “hope,” “going forward,” “intend,” “ought to,” “plan,” “project,” “potential,” “seek,” “may,” “might,” “can,” “could,” “will,” “would,” “shall,” “should,” “is likely to” and the negative form of these words and other similar expressions. This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident,” and similar expressions. Forward-looking statements are based on management’s current expectations, assumptions, and assessments of current market and operating conditions. These statements involve inherent risks, uncertainties, and other factors, many of which are outside the control of the Company, and which could cause actual results to differ materially from those expressed or implied in such statements. Actual results may differ materially from those expressed or implied in forward-looking statements due to a variety of factors and other risks described in the Company’s filings with the U.S. Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company undertakes no, and expressly disclaims any, obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable law.

View original content:https://www.prnewswire.com/news-releases/yiren-digital-accelerates-operating-efficiency-through-ai-agent-deployment-302833201.html

SOURCE Yiren Digital Ltd.

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Infinium Edge Launches EdgeSites™, a New Infrastructure Model for Deploying AI Compute at Existing Commercial and Industrial Facilities

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EdgeSites delivers operational AI infrastructure in existing powered buildings — factory-built data center modules, waterless cooling, and ready in months without new construction or grid interconnection required.

SACRAMENTO, Calif., July 23, 2026 /PRNewswire/ — Infinium Edge™ today announced Infinium EdgeSites™, a development program that utilizes existing commercial and industrial facilities to deploy operational AI compute infrastructure. Built around Infinium Edge’s proprietary Edge Thermal Vectoring™ immersion cooling platform, EdgeSites enables high-density GPU deployments in existing buildings that were never designed as data centers — without new construction, without cooling water infrastructure, and without the multi-year grid interconnection timelines that constrain conventional large-scale data center development.

More than 20 million commercial and industrial electricity customers in the US are served by electrical infrastructure sized to peak demand – which industry research shows are utilized at only 40-60% on average. That unused headroom, capacity already contracted, energized, and sitting behind the meter, can support high-density AI compute without adding new load to the grid or waiting on a new interconnection.

At the center of the program is the Vector ONE™ — Edge’s factory-built, self-contained immersion cooling system designed to house 1 MW of AI compute capacity. Vector ONE units are engineered for deployment in standard commercial and industrial buildings, either indoors or outdoors, arriving pre-integrated, fully commissioned and require no municipal water connection. Installations are modular and scalable: additional units can be commissioned as site power and demand allow, without rebuilding the underlying infrastructure and occupy up to 70% less floor space than air-cooled equivalents.

Built for the Shift to Inference

As inference moves to displace training as the dominant AI workload, the growth opportunity is shifting towards small, distributed data centers that can be deployed quickly and sited where demand originates. Conventional data center developments are under compounding pressure from long utility interconnection queues, sometimes lasting years, pressure around water use, and general community and regulatory opposition enacting restrictions. Community opposition and regulatory friction delayed or blocked an estimated $156 billion in planned U.S. data center capacity in 2025 alone.

EdgeSites is purpose-built for the structural shift to inference and addresses key issues stalling conventional data center developments today. Each Vector ONE unit delivers 1 MW of inference-ready capacity inside an existing building, in a market that already has established electrical infrastructure, in a timeline measured in months rather than years. Multiple units can be used in tandem to deploy up to 10 MW of capacity at a single site.  The program converts the distributed inventory of underutilized industrial or commercial electrical capacity in the United States into a nationally scaled inference network. Vector ONE’s dry-cooler loop consumes no municipal water, making EdgeSites viable in markets where evaporative cooling has been restricted or banned.

“The data center industry has been answering an infrastructure shortage with a construction playbook — build new facilities, secure new grid connections, wait years for capacity to come online,” said Robert Schuetzle, CEO of Infinium. “That model cannot keep pace with AI deployment timelines. Infinium EdgeSites operate around different premises: the power already exists, the buildings already exist, and the technology now exists to put them to work. We are making operational what the industry has been treating as stranded.”

Deploying EdgeSites

As demand for AI compute continues to outpace available infrastructure and focuses on distributed inference needs, Infinium Edge is expanding the EdgeSites network with qualified host locations and compute partners.

Commercial and industrial property owners of industrial sites, distribution centers, warehouses, or large commercial properties with available electrical capacity benefit from receiving lease income from infrastructure they already own or control. Infinium Edge manages all aspects of site development and operations for installing and deploying the Vector ONE system. No capital investment or operational responsibility is required from the host.

AI companies, enterprises, and compute operators requiring infrastructure on compressed deployment timelines can access high-density, edge-proximate GPU capacity through a straightforward capacity agreement, priced by the kilowatt-month, with backup power included in the capacity fee. There is no construction to manage, no permitting process to navigate, and no cooling infrastructure to operate or maintain.

Infinium Edge manages the full program from development and installation to operation and monitoring— simplifying development and data center management for AI companies and enterprises.

Reach out to learn more and partner in EdgeSites deployments.

Inquiries: www.infinium.ai/edgesites

About Infinium Edge™
Infinium Edge™ is the advanced AI data center infrastructure platform from Infinium, delivering high-density, sustainable compute through proprietary single-phase immersion cooling technology. Infinium Edge is the only North American producer of Fischer-Tropsch immersion fluids and offers a full-stack platform — including Edge Thermal Vectoring™ platform, Vector ONE™ modular AI Factory units, ETV100 immersion fluids, and integrated monitoring systems — engineered for the thermal and operational demands of AI and high-performance computing at scale. For more information, visit www.infinium.ai.

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SOURCE Infinium

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ChipMOS SCHEDULES SECOND QUARTER 2026 FINANCIAL RESULTS SEMIANNUAL CONFERENCE CALL

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HSINCHU, July 23, 2026 /PRNewswire-FirstCall/ — ChipMOS TECHNOLOGIES INC. (“ChipMOS” or the “Company”) (Taiwan Stock Exchange: 8150 and Nasdaq: IMOS), an industry leading provider of outsourced semiconductor assembly and test services (“OSAT”), today announced that it will report second quarter 2026 results and host a semiannual conference call after the close of trading on the Taiwan Stock Exchange on Tuesday, August 11, 2026.

Investors and analysts are encouraged to participate in the semiannual conference call using the dial-in phone number noted below. A webcast and replay will be available on the Company’s website.

Date: Tuesday, August 11, 2026
Time: 3:00PM Taiwan (3:00AM New York)
Dial-In: +886-2-3396 1191
Password: 1637011 #

Semiannual Conference Call Webcast and Replay: https://www.chipmos.com/chinese/ir/info2.aspx
Replay: Starts Approximately 2 hours after the live call ends

Language: Mandarin

Note: A transcript will be provided on the Company’s website in English following the semiannual conference call to help ensure transparency, and to facilitate a better understanding of the Company’s financial results and operating environment.

About ChipMOS TECHNOLOGIES INC.:
ChipMOS TECHNOLOGIES INC. (“ChipMOS” or the “Company”) (Taiwan Stock Exchange: 8150 and Nasdaq: IMOS) (www.chipmos.com) is an industry leading provider of outsourced semiconductor assembly and test services. With advanced facilities in Hsinchu Science Park, Hsinchu Industrial Park and Southern Taiwan Science Park in Taiwan, ChipMOS is known for its track record of excellence and history of innovation. The Company provides end-to-end assembly and test services to leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries serving virtually all end markets worldwide.

Forward-Looking Statements:
This press release may contain certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes,’ ‘expects,’ ‘anticipates,’ ‘projects,’ ‘intends,’ ‘should,’ ‘seeks,’ ‘estimates,’ ‘future’ or similar expressions or by discussion of, among other things, strategies, goals, plans or intentions. These statements may include financial projections and estimates and their underlying assumptions, statements regarding current macroeconomic conditions, including the impacts of high inflation, foreign exchange rates and risk of recession, on demand for our products, consumer confidence and financial markets generally; changes in trade regulations, policies, and agreements and the imposition of tariffs that affect our products or operations, including potential new tariffs that may be imposed and our ability to mitigate with respect to future operations, products and services, and statements regarding future performance. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document, based on a number of important factors and risks, which are more specifically identified in the Company’s most recent U.S. Securities and Exchange Commission (the “SEC”) filings. Further information regarding these risks, uncertainties and other factors are included in the Company’s most recent Annual Report on Form 20-F filed with the SEC and in its other filings with the SEC.

Contacts:

In Taiwan

Jesse Huang

ChipMOS TECHNOLOGIES INC.

+886-6-5052388 ext. 7715

IR@chipmos.com

In the U.S.

David Pasquale

Global IR Partners

+1-914-337-8801

dpasquale@globalirpartners.com

 

View original content:https://www.prnewswire.com/news-releases/chipmos-schedules-second-quarter-2026-financial-results-semiannual-conference-call-302831885.html

SOURCE ChipMOS TECHNOLOGIES INC.

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