Biggish Blue posted a three percent year-on-year revenue rise for its second quarter thanks mostly to sales gains across cloud, global business services and its software business Red Hat, despite net income falling marginally overall.
Total revenue for the quarter stood at $18.7 billion for the three months ending 30 June, up from $18.1 billion the year before, with global business services revenue up 12 percent and cloud revenue rising 13 percent to $7 billion.
Meanwhile, Red Hat revenue grew 20 percent in the quarter, despite net income falling slightly from $1.36 billion to $1.32 billion.
CEO Arvind Krishna said: “We are pleased with the early signs of progress from the significant changes we are making. But, as you would expect, it will take time before we realise the full benefit of these changes.
“Our second-quarter results demonstrate the progress we are making toward achieving our two financial objectives, sustainable mid-single-digit revenue growth post-separation and strong cash generation.”
IBM said its debt has been reduced by $6.4 billion since the end of 2020, while it generated net cash from operating activities of $2.6 billion during the most recent quarter.
Non-GAAP diluted earnings per share rose seven percent to $2.33 and the results saw the company beat consensus expectations as its share price rose following the announcement.
