IBM Revenue Declines for 20th Consecutive Quarter

The transcript discusses IBM's financial performance, highlighting declining revenue and gross profit margins. Despite this, pre-tax margins improved due to cost-cutting measures, particularly in SGNA expenses. The company maintains its non-GAAP EPS guidance for the year. The cloud business shows growth, but not enough to offset declines in legacy businesses. IBM's employment strategy involves layoffs in non-growth areas while potentially hiring in growth sectors like AI and cloud. The future outlook hinges on understanding gross margin declines and the potential for newer products to improve margins.

What factors contributed to the increase in pre-tax margin despite the decline in revenue?

How has the company's cloud business performed in terms of revenue growth?

What challenges does IBM face with its legacy businesses?

What are the implications of the layoffs on IBM's overall cost structure?

What insights can be drawn from the decline in gross margins?