International Business Machines Corp. (IBM) Monday reported results for the second quarter, with both earnings and revenues trumping Wall Street estimates.
Armonk, New York-based IBM reported second-quarter profit of $1.392 billion or $1.53 per share, up from $1.325 billion or $1.47 per share last year.
Excluding items, IBM's adjusted earnings from continuing operations were $2.31 per share for the period. Analysts polled by Thomson Reuters expected earnings of $2.28 per share. Analysts' estimates typically exclude special items.
IBM's second-quarter revenues rose 9 percent to $15.54 billion from $14.22 billion last year. Analysts had a consensus revenue estimate of $15.19 billion for the quarter.
"In the quarter we delivered good revenue performance with balanced growth across our geographies, driven by client demand for our hybrid cloud and AI offerings. The IBM team executed our strategy well," said CEO Arvind Krishna. "With our first half results, we continue to expect full-year revenue growth at the high end of our mid-single digit model."
Software, including Hybrid Platform & Solutions, Transaction Processing, revenues were up 6 percent to $6.17 billion, while Consulting revenues, which includes Business Transformation, Technology Consulting and Application Operations, rose 10 percent to $4.81 billion. Infrastructure revenues, which includes Hybrid Infrastructure, Infrastructure Support, rose 19 percent to $4.24 billion.
Looking forward, the company said it continues to expect constant currency revenue growth at the high end of its mid-single digit model. The company also expects an additional 3.5 point contribution from incremental sales to Kyndryl.
IBM closed Monday's trading at $138.13, down $1.79 or 1.28%, on the NYSE. The stock further slipped $4.19 or 3.03% in the after-hours trading.
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