IBM Reports Q2 Results Above Expectations

International Business Machines Corp (NYSE: IBM) started as the computing, tabulating, and recording firm in the late 1800s. Its first major contract was to supply equipment for the tabulation and assessment of the U.S. census in 1890. The company grew over the years and become a leading supplier of computer systems in the late 1990s. However, it has shifted its focus to cloud computing and AI in recent years. Its current product portfolio ranges from IT services and cloud offerings to artificial intelligence and enterprise software.

The Armonk, New York-based technology company recently announced better-than-expected financial results for the second quarter. IBM reported earnings of $1.47 per share, compared to $1.52 per share in the year-ago quarter. On an adjusted basis, IBM earned $2.33 per share, ahead of the consensus forecast of $2.31 per share.

Revenue inched up 3 percent on a year-over-year basis to $18.75 billion, beating analysts’ average estimate of $18.29 billion. If we look at the performance of key segments, revenue from the cloud & cognitive software unit rose 6.1 percent to $6.1 billion, while global business services revenue jumped 11.6 percent to $4.3 billion. In comparison, global technology services revenue increased just 0.4 percent to $6.3 billion.

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Speaking on the results, CEO Arvind Krishna said, “In the second quarter client adoption of our hybrid cloud platform contributed to strong performance in Global Business Services and software and drove improved overall revenue growth.  At the same time, we continued to help clients infuse our AI-based technology offerings into their core business workflows. We are pleased with our progress and we remain on track to deliver full-year revenue growth and meet our cash flow objective.”

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