Overview - IBM Corporation Financial Profile - October 2009
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Recent Highlights - 3Q 2009
- Improved revenue performance vs 2Q09; Significant share gains in hardware and software
- Expanded gross margin by 1.8pts and pre-tax margin by 3.2pts, led by software and services
- Delivered 18% Yr/Yr EPS growth
- Generated $3.4B Free Cash Flow excluding GF receivables, up $1.3B Yr/Yr
- Expect FY'09 EPS of at least $9.85; well ahead of track to IBM's 2010 roadmap
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Five Year Summary



In an effort to provide additional and useful information regarding the company’s results as determined by generally accepted accounting principles (GAAP), these materials contain the following non-GAAP financial measures:
(i) revenue at constant currency, (ii) net cash from operations excluding Global Financing receivables, (iii) free cash flows excluding Global Financing receivables and (iv) non GF debt-to-capital ratio.
For reconciliation to GAAP and other information about (i) revenue at constant currency for FY 2008 and (ii) net cash from operations excluding Global Financing receivables for FY 2004 - FY 2008, see "Non GAAP Supplementary Materials"
in the Form 8K submitted to the SEC on January 20, 2009. For reconciliation to GAAP and other information about (i) revenue at constant currency 3Q09 YTD, (ii) net cash from operations excluding Global Financing receivables for 3Q09 YTD,
(iii) free cash flows excluding Global Financing receivables for 3Q09 and (iv) non GF debt-to-capital ratio for December 2008 and September 2009, see "Non GAAP Supplementary Materials" in Form 8K submitted to the SEC on October 15, 2009.
