IBM Shares Slide After Q2 Results: EPS Beat, Revenues Beat

International Business Machines Corp. (NYSE:IBM) released its second-quarter results after Wednesday's closing bell. Here's a look at the details from the report. 

The Details: IBM reported quarterly earnings of $2.80 per share, which beat the Street consensus estimate of $2.64. Quarterly revenue came in at $16.977 billion, which beat the consensus estimate of $16.576 billion.

Read Next:  Quantum Stock Tracker: Rigetti Achieves Major Breakthrough, But Jim Cramer Names Another Stock To ‘Own’

IBM reported the following second-quarter highlights:

• Revenue
  – Revenue of $17 billion, up 8%, up 5% at constant currency
  – Software revenue up 10%, up 8% at constant currency
  – Consulting revenue up 3%, flat at constant currency
  – Infrastructure revenue up 14%, up 11% at constant currency
• Profit
  – Gross Profit Margin (Non-GAAP): 60.1%, up 230 basis points
  – Pre-Tax Income Margin (Non-GAAP): 18.8%, up 110 basis points
• Cash Flow
  – Year to date, net cash from operating activities of $6.1 billion; free cash flow of $4.8 billion

“We once again exceeded expectations for revenue, profit and free cash flow in the quarter. IBM remains highly differentiated in the market because of our deep innovation and domain expertise, both crucial in helping clients deploy and scale AI. Our generative AI book of business continues to accelerate and now stands at more than $7.5 billion,” said Arvind Krishna, IBM CEO.

Outlook: “With our strong first-half performance, we are raising our full-year outlook for free cash flow, which we expect to exceed $13.5 billion,” Krishna said.

IBM Price Action: According to data from Benzinga Pro, IBM stock was down 5.68% at $265.98 in Wednesday's extended trading. 

Read Next: 

• Space Stock Tracker: Virgin Galactic Makes A Comeback While Rocket Lab Takes A Breather

Photo: Shutterstock