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Key Takeaways
- IBM’s second-quarter results surpassed revenue and earnings expectations, lifting its shares in after-hours trading.
- Software revenue rose 7% to $6.7 billion in the latest quarter.
- The company said its generative AI business has grown to $2 billion.
International Business Machines ( IBM ) beat analysts’ expectations on the top and bottom lines with its second-quarter results Wednesday, sending shares higher in aftermarket trading as CEO Arvind Krishna pointed to the company’s expanding artificial intelligence (AI) business.
The company posted diluted earnings per share of $1.96 on revenue of $15.8 billion, above projections of $1.74 per share on revenue of $15.6 billion, per Visible Alpha. Software revenue rose 7% to $6.7 billion. IBM reiterated its full-year projection of mid-single-digit revenue growth.
“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 $2 billion since the launch of watsonx one year ago,” Krishna said.
Shares of the company rose about 3% after the closing bell. As of Wednesday’s close, IBM’s stock was up about 13% in 2024.