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CLAIM #31043 · IBM (IBM) · 2023Q2 earnings call · Jul 19, 2023 · due Dec 31, 2023

This year, just given the differentiated price position, we said we'd grow mid-single-digit. We feel very confident exiting first-half.

James J. Kavanaugh · CFO

PENDING
graded after results covering Dec 31, 2023 are reported

In context

t we said from a model perspective, we saw the inflection shift versus being down mid-single-digit, which is a tremendous drain on us, we saw low-single-digit growth. Now on top of that, just given the highly inflationary environment, we talked about we were going to get disproportional price in ‘23. Call that, I don't know, 2, 3, 4 points somewhere in that ballpark. So when you look at our first-half performance, our first half were up 8%. By the way, our first-half last year was relatively flat. It's our easier compare. So we have to acknowledge it's easier compare. We're going to enter a different -- more difficult compare in the second-half. But that 8 points of growth overall, I would say, once you normalize for the easier compare, we can grow low-single-digit on a sustainable basis. This year, just given the differentiated price position, we said we'd grow mid-single-digit. We feel very confident exiting first-half. Patricia Murphy: Thanks, Wamsi. Let's go to the next question, please. Operator: Thank you. Next question is from Amit Daryanani with Evercore. You may go ahead. Amit Daryanani: Yes, thanks for taking my question. Yes, I guess, I was hoping you could spend a bit of time on the consulting side and the growth did decelerate there a little bit from 8% in Q1 to 6%. I'd love to understand how does that 6% growth in consolidated Q2 stack up versus your internal expectations? And then given the deceleration we saw in June, maybe just talk about what gives you confidence that the growth rate holds up, and that's 6% to 8% range for the back half of the year when some of your peers have actually talked about that market decelerating a bit? Thank you. Jim Kavanaugh: Thanks, Amit. I'll take this one.

Verify independently

SEC filings for IBM · Claim quote is verbatim from the 2023Q2 earnings call.