IBM: Fiscal 2Q17 Financial Results

IBM Corp. announced 2FQ17 earnings results for the period ended June 30, 2017.

As usual, the company is evasive and revealed only one figure for its storage business: +8% growth Y/Y.

The growth is led, of course, by flash business, as for all its main big storage competitors.

The company stated that: “Mainframe and storage margins grew year to year and Power margins improved sequentially. Storage hardware was up again this quarter, increasing 8%, led by strong double-digit growth in our all-flash array offerings. Flash was the growth catalyst in our storage mid-range and high-end offerings. Storage hardware margins increased, both year to year and sequentially. (…)  And in systems, storage had been declining, but you’ll remember we planted the flag as we got all-flash into the product line toward the end of last year, and we’ve now had two consecutive quarters of revenue growth.“

This yearly percentage growth was down each quarter since 4Q11 (see table blow), a dramatic trend, but IBM is finally coming back to a relatively small growth since the beginning of the year.

Last year we estimate IBM storage revenue at $548 million for 2Q16. Then +8% means $592 million for its most recent three-month period.

Revenue Growth of IBM Storage Products

To read the earnings call transcript