IBM Shares Climb On Strong Q2 Results: Here's The Details

International Business Machines Corp. IBM reported its second-quarter financial results Wednesday. Here's a look at the key figures from the report. 

The Details: IBM reported quarterly earnings of $2.43 per share, which beat the analyst consensus estimate of $2.19 by 10.96%. Quarterly sales clocked in at $15.8 billion, which beat the analyst consensus estimate of $15.616 billion by 1.18% and represents a 2.10% increase over sales of $15.475 billion from the same period last year.

Software revenue up 7%, 8% at constant currency, and consulting revenue was down 1% or up 2% at constant currency. Infrastructure revenue was up 1%, 3% at constant currency, for the quarter.

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“We had a strong second quarter, exceeding our expectations, driven by growth in both revenue and free cash flow. We continue to see that clients turn to IBM for our technology and our expertise in enterprise AI, and our book of business for generative AI has grown to more than two billion dollars since the launch of watsonx one year ago,” said Arvind Krishna, CEO of IBM.

“Given our first-half results, we are raising our full-year view of free cash flow, which we now expect to be more than $12 billion.”

Outlook: IBM continues to expect constant currency revenue growth consistent with its mid-single-digit model. At current foreign exchange rates, currency is expected to be about a one to two-point headwind to revenue growth. The company now expects more than $12 billion in free cash flow for the full year.

IBM Price Action: According to Benzinga Pro, IBM shares are up 2.17% after-hours at $188 at the time of publication Wednesday.

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