“For the year as you expect 2023 infrastructure revenue will decline, impacting IBM's overall revenue growth by over 1 point.”

In context

“ect revenue growth at the high end of software's mid-single-digit model. This is all-in including acquisitions. Our revenue growth drives operating leverage with software pre-tax margin expected to expand 1.5 points to 2 points year-to-year. In consulting, we’ve reposition our business to address today's clients' needs. What we saw in the second quarter didn't change our view of the year. We continue to expect consulting revenue growth in the range of 6% to 8%. And to expand consulting pre-tax margin by at least 1 point. And then for infrastructure, as I described in the past, revenue is roughly flat over the mid-term model horizon, with performance in any year reflecting product cycle dynamics. In the second quarter, we have wrapped on the z16 introduction in a seasonally strong quarter. For the year as you expect 2023 infrastructure revenue will decline, impacting IBM's overall revenue growth by over 1 point. We continue to expect pre-tax margin in the low-teens. Our expectations for 2023 reflect a higher-growth, higher-value business with strong cash generation, what we have referred to as today's IBM. The analysts' estimates also reflect these dynamics. And as we look at the third quarter, the average of analysts' estimates looks reasonable. In closing, we are pleased with our first-half performance and it keeps us on track to deliver revenue growth, expand margin and grow free cash flow for the year. I'm happy to provide more color on the quarter and our expectations in the Q&A. Patricia, let's get started. Patricia Murphy: Thank you, Jim. Before we begin the Q&A, I'd like to mention a couple of items. First, supplemental information is provided at the end of the presentation. And then seco”