IBM published its Q2 2022 results last night posting $15.5 billion in revenue, marking a 9% year-over-year increase with an adjusted gross profit margin of 54.5% for the quarter ending June 30 .

However, the current geopolitical landscape continues to prove challenging for the technology provider, as Chief Financial Officer James Kavanaugh told analysts that currency headwinds and the impact of the Russian market exit have put pressure on IBM’s outlook.

“With the year-over-year loss of business due to the liquidation, Russia impacted our bottom line by approximately $100 million,” he said.

The strengthening of the dollar against a number of currencies is also proving difficult for large multinationals like IBM. Kavanaugh said the company expects foreign exchange revenue to decline about 6% this year.

All of this led IBM to cut its free cash flow for the full year from the $10 billion to $10.5 billion it forecast in April to “about $10 billion.” IBM shares fell 4% in after-hours trading following the announcement.

Strong departmental growth

Despite these global challenges, growth remained strong across most of IBM’s business units. The company’s consulting division generated $4.8 billion in revenue, a 9.8% year-over-year increase, while its infrastructure unit, which includes mainframes, l hybrid infrastructure and infrastructure support, generated $4.2 billion in revenue, up nearly 19% year-on-year.

IBM’s software division also performed strongly, posting revenues of $6.2 billion, an increase of 6.4%. Hybrid cloud and transaction processing provided the company with the strongest revenue growth this quarter, posting growth of 14% and 12%, respectively.

Red Hat, IBM’s open source software subsidiary with a newly appointed President and CEO, also performed well this quarter, increasing revenue by 12%.

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