“And we continue to expect free cash flow of about $10.5 billion, which is up over $1 billion year-to-year.”

In context

“z Systems' product cycle and changes in useful life, partially offset by nearly 2 points of currency impact. Now let me bring it back up to the IBM level to wrap it up. When we first introduced today's IBM back in October of 2021, we provided a midterm model for revenue growth, margin expansion and free cash flow growth. We delivered on that model throughout last year and now have a good start to 2023. In the first quarter, we delivered constant currency revenue growth in line with our mid-single-digit model, expanded gross margin, drove productivity in our underlying business and grew our free cash flow. Looking at full year 2023, as always, I'll start with our two primary metrics: revenue growth and free cash flow. On the top line, we expect constant currency revenue growth of 3% to 5%. And we continue to expect free cash flow of about $10.5 billion, which is up over $1 billion year-to-year. Inherent in our midterm model is margin expansion, driven by improving business mix, efficiency initiatives and productivity enhancement. Driving efficiency and productivity has always been a part of our operating and financial models. I mentioned some of the initiatives we have underway and we continue to evaluate additional actions. Altogether, the current initiatives are expected to deliver $2 billion in annual run rate savings by the end of 2024. These initiatives provide additional flexibility, enabling reinvestment in the business to support future growth, contributing to margin expansion and increasing financial flexibility. Let me spend a minute on our expectations for constant currency revenue and pretax profit performance by segment. In Software, we continue to expect revenue gr”