IBM Q2 Earnings Highlights: Revenue And EPS Beat, Cloud Segment Revenue Shows Double-Digit Growth

Technology giant International Business Machines (NYSE: IBM) reported second-quarter financial results after the market close Monday. Here are the key highlights.

What Happened: IBM reported second-quarter revenue of $15.5 billion, up 9% year-over-year. The total came in ahead of a Street estimate of $15.25 billion, according to data from Benzinga Pro.

The company reported earnings per share of $2.31, beating a Street estimate of $2.28.

• Revenue for the software segment was $6.2 billion, up 6.4% year-over-year.
• Revenue for the consulting segment was $4.8 billion, up 9.8% year-over-year.
• Revenue for the infrastructure segment was $4.2 billion, up 19.0% year-over-year.

“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,” IBM CEO Arvind Krishna said.

The company’s cloud business lines performed well in the quarter. Hybrid cloud revenue was $21.7 billion over the last 12 months, up 16% year-over-year.

• Software hybrid cloud revenue was up 14% year-over-year in the quarter. Consulting hybrid cloud revenue was up 20% year-over-year in the quarter. Infrastructure hybrid cloud revenue was up 24% year-over-year in the quarter.

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What’s Next: IBM said it expects full-year revenue growth at the high end of the mid-single digits.

“The company also expects an additional 3.5 point contribution from incremental sales to Kyndryl,” the company said.

IBM expects free cash flow to be $10 billion for the full fiscal year.

“With our first half results, we continue to expect full-year revenue growth at the high end of our mid-single digit model,” Krishna said.

IBM Price Action: Shares of IBM are down 2% in after-hours trading to $134.77 at the time of writing.