Stock Analysis on Net
Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Income Statement
Quarterly Data

Beginner level

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

International Business Machines Corp., consolidated income statement (quarterly data)

US$ in millions

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3 months ended: Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Services 11,180  10,937  11,374  11,015  11,703  12,352  12,423  12,937  12,566  12,886  12,961  13,117  12,703  12,547  12,342  12,921  12,938  13,018  12,391  12,621  12,327  12,597  12,366 
Sales 6,106  6,918  5,895  10,459  5,981  6,458  5,354  8,420  5,800  6,721  5,700  8,970  6,017  6,324  5,404  8,399  5,872  6,792  5,879  8,976  6,501  7,733  6,757 
Financing 274  268  302  302  344  351  405  403  390  396  411  455  433  418  409  451  416  428  414  461  452  483  467 
Revenue 17,560  18,123  17,571  21,776  18,028  19,161  18,182  21,760  18,756  20,003  19,072  22,542  19,153  19,289  18,155  21,771  19,226  20,238  18,684  22,058  19,280  20,813  19,590 
Services (7,357) (7,520) (7,844) (8,020) (7,840) (8,272) (8,359) (8,539) (8,040) (8,645) (8,835) (8,945) (8,426) (8,523) (8,553) (8,530) (8,418) (8,691) (8,382) (8,350) (8,067) (8,431) (8,278)
Sales (1,601) (1,739) (1,624) (2,461) (1,635) (1,651) (1,516) (2,248) (1,625) (1,869) (1,722) (2,416) (1,605) (1,684) (1,551) (2,063) (1,536) (1,582) (1,378) (2,025) (1,544) (1,726) (1,625)
Financing (172) (164) (181) (196) (217) (228) (264) (286) (288) (290) (268) (320) (322) (288) (279) (285) (259) (263) (238) (277) (233) (266) (235)
Cost (9,130) (9,423) (9,649) (10,677) (9,692) (10,151) (10,139) (11,073) (9,953) (10,804) (10,825) (11,681) (10,353) (10,495) (10,383) (10,878) (10,213) (10,536) (9,998) (10,652) (9,844) (10,423) (10,138)
Gross profit 8,430  8,700  7,922  11,099  8,336  9,010  8,043  10,687  8,803  9,199  8,247  10,861  8,800  8,794  7,772  10,893  9,013  9,702  8,686  11,406  9,436  10,390  9,452 
Selling, general and administrative (4,647) (5,248) (5,955) (5,433) (5,024) (5,456) (4,691) (4,701) (4,363) (4,857) (5,445) (5,147) (4,648) (5,160) (5,152) (4,976) (4,732) (5,349) (6,012) (5,158) (4,731) (5,179) (5,362)
Research, development and engineering (1,515) (1,582) (1,625) (1,596) (1,553) (1,407) (1,433) (1,358) (1,252) (1,364) (1,405) (1,428) (1,342) (1,484) (1,533) (1,431) (1,397) (1,465) (1,458) (1,362) (1,287) (1,300) (1,298)
Intellectual property and custom development income 134  203  116  159  166  222  101  184  275  250  317  348  308  365  445  521  528  365  217  193  188  128  173 
Operating income 2,402  2,073  458  4,229  1,925  2,369  2,020  4,812  3,463  3,228  1,714  4,634  3,118  2,515  1,532  5,007  3,412  3,253  1,433  5,079  3,606  4,039  2,965 
Other income and (expense) (252) (179) (181) 118  29  747  73  (183) (276) (280) (413) (1) 115  75  27  136  (37) (253) 148  132  300  144 
Interest expense (323) (323) (326) (354) (432) (348) (210) (195) (191) (172) (165) (165) (168) (147) (135) (158) (158) (167) (147) (128) (117) (115) (108)
Income (loss) from continuing operations before income taxes 1,827  1,571  (49) 3,993  1,522  2,768  1,883  4,434  2,996  2,776  1,136  4,468  3,065  2,443  1,424  4,985  3,263  3,049  1,033  5,099  3,621  4,224  3,001 
(Provision for) benefit from income taxes (128) (209) 1,225  (323) 151  (269) (290) (2,481) (304) (373) 539  (5,521) (339) (111) 329  (479) (409) (544) 983  (638) (659) (698) (586)
Income from continuing operations 1,699  1,362  1,176  3,670  1,673  2,499  1,593  1,953  2,692  2,403  1,675  (1,053) 2,726  2,332  1,753  4,506  2,854  2,505  2,016  4,461  2,962  3,526  2,415 
Income (loss) from discontinued operations, net of tax (1) (1) (1) —  (1) (1) (2) (2) (1) —  (1) (3) (5) (1) (1) (2) (12) (77) (87)
Net income 1,698  1,361  1,175  3,670  1,672  2,498  1,591  1,951  2,694  2,404  1,679  (1,054) 2,726  2,331  1,750  4,501  2,853  2,504  2,014  4,463  2,950  3,449  2,328 

Based on: 10-Q (filing date: 2020-10-27), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-28), 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-30), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-04-24), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-10-31), 10-Q (filing date: 2017-07-25), 10-Q (filing date: 2017-04-25), 10-K (filing date: 2017-02-28), 10-Q (filing date: 2016-10-25), 10-Q (filing date: 2016-07-26), 10-Q (filing date: 2016-04-26), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

Income statement item Description The company
Revenue Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise. International Business Machines Corp.’s revenue increased from Q1 2020 to Q2 2020 but then decreased significantly from Q2 2020 to Q3 2020.
Operating income The net result for the period of deducting operating expenses from operating revenues. International Business Machines Corp.’s operating income increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Income (loss) from continuing operations before income taxes Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest. International Business Machines Corp.’s income (loss) from continuing operations before income taxes increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Net income The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. International Business Machines Corp.’s net income increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.