Exhibit 99.1

IBM REPORTS 2020 FOURTH-QUARTER AND FULL-YEAR RESULTS

Strong hybrid cloud adoption; Gross margin expansion; Solid cash generation

ARMONK, N.Y., January 21, 2021 . . . IBM (NYSE: IBM) today announced fourth-quarter and full-year 2020 earnings results.

We made progress in 2020 growing our hybrid cloud platform as the foundation for our clients’ digital transformations while dealing with the broader uncertainty of the macro environment." said Arvind Krishna, IBM chairman and chief executive officer. "The actions we are taking to focus on hybrid cloud and AI will take hold, giving us confidence we can achieve revenue growth in 2021.

Highlights

Fourth Quarter:

GAAP EPS from continuing operations of $1.41; Operating (non-GAAP) EPS of $2.07

EPS includes the impact of a pre-tax charge of more than $2.0 billion for structural actions in the fourth quarter

Revenue of $20.4 billion, down 6 percent (down 8 percent adjusting for divested businesses and currency)
Total cloud revenue of $7.5 billion, up 10 percent (up 8 percent adjusting for divested businesses and currency)
Red Hat revenue up 19 percent (up 17 percent adjusting for currency), normalized for historical comparability
GAAP gross profit margin of 51.7 percent, up 70 basis points; Operating (non-GAAP) gross profit margin of 52.5 percent, up 70 basis points
Debt reduced by $3.9 billion since end of third quarter

Full Year:

GAAP EPS from continuing operations of $6.13; Operating (non-GAAP) EPS of $8.67
Revenue of $73.6 billion, down 5 percent (down 4 percent adjusting for divested businesses and currency)
Total cloud revenue of $25.1 billion, up 19 percent (up 20 percent adjusting for divested businesses and currency)
Red Hat revenue up 18 percent, normalized for historical comparability
GAAP gross profit margin up 100 basis points; operating (non-GAAP) gross profit margin up 130 basis points
Net cash from operating activities of $18.2 billion; free cash flow of $10.8 billion
Cash on hand of $14.3 billion; debt reduced by more than $11 billion since closing the Red Hat acquisition

FOURTH QUARTER 2020

Results include the impact of $2.04 billion pre-tax charge

    

    

    

    

Pre-tax

    

Gross

 

Diluted

Net

Pre-tax

Income

Profit

 

EPS *

Income *

Income *

Margin *

Margin

 

GAAP from Continuing Operations

$

1.41

$

1.3B

$

1.3B

 

6.3

%  

51.7

%

Year/Year

 

(66)

%  

 

(66)

%  

 

(68)

%  

(12.0)

Pts

0.7

Pts

Operating (Non-GAAP)

$

2.07

$

1.9B

$

2.1B

 

10.2

%  

52.5

%

Year/Year

 

(56)

%  

 

(56)

%  

 

(56)

%  

(11.4)

Pts

0.7

Pts

* Results include the impact of pre-tax charge of $2.04 billion for structural actions in the fourth quarter.


The following information was filed by International Business Machines Corp (IBM) on Thursday, January 21, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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