“We see constant-currency revenue growth of 3% to 5% and we expect free cash flow of about $10.5 billion, which I'll remind you is up over $1 billion year-to-year.”

In context

“rastructure profit, we expanded gross margins 200 basis points, while pre-tax margin was down 40 basis points, including about 1 point of impact from currency. Now that I've gone through the segment results, let me bring it back up to the IBM level to wrap up. We feel good about our first-half performance, with momentum in our growth vectors of software and consulting and a solid recurring revenue base driven by our high-value software. We're delivering strong gross margin performance, with growth across our segments driven by portfolio mix and productivity. Our overall year-to-year profit dynamics as expected reflect the impact of last year's divestiture. As we look to the full-year of 2023, we're holding our view of the year on our two primary metrics: revenue growth and free cash flow. We see constant-currency revenue growth of 3% to 5% and we expect free cash flow of about $10.5 billion, which I'll remind you is up over $1 billion year-to-year. Let me comment on a few items within these full-year expectations. We expect IBM's operating pre-tax margin to expand by about 0.5 point year-to-year, driven by a combination of product mix and progress on our productivity initiatives. That's consistent with our view 90-days ago and in line with our model. We're also maintaining our view of our tax rate for the year, which is in the mid-to-high teens range. And then finally, while there has been some volatility in currency rates over the last couple of weeks, at current spot rates, currency translation is still expected to be fairly neutral to our revenue growth for the year. I'll remind you that our profit and cash dynamics this year are impacted by the rap on last year's hedging gains, which is about 1 point of headwind to our pre-tax m”