IBM maintains forecasts after decent second quarter

International Business Machines - better known as IBM - posted its second quarter results on Thursday, reporting a 4% improvement in revenue year-on-year, and a “strong” profit performance.

The American computing giant said GAAP earnings per share from continuing operations reached $2.61, with operating earnings per share rising to $3.08 - both improvements of 5%.

It said GAAP pre-tax income was ahead 14%, with operating pre-tax income rising 11%, and pre-tax margins expanding more than 100 basis points year-on-year.

Revenue for the quarter was $20bn, up 4%, or 2% when adjusting for currency.

Big Blue said it had “strategic imperatives” revenue of $39bn over last 12 months, an increase of 15% or 12% at constant currency, with that figure representing 48% of IBM revenue.

Cloud revenue wa $18.5bn over last year, an improvement of 23% or 20% at constant exchange rates.

The firm said its as-a-service annual exit run rate for cloud revenue was $11.1bn in the quarter - up 26% year--on-year or 24% when adjusting for currency.

IBM maintained its full-year operating non-GAAP earnings per share and free cash flow expectations.

"We delivered strong revenue and profit growth in the quarter, underscoring IBM's progress and momentum in the emerging, high-value segments of the IT industry," said chairman, president and chief executive officer Ginni Rometty.

“More clients are engaging IBM on their journey to the cloud, and deploying IBM Cloud, Watson AI, analytics, blockchain and security solutions.

“This demonstrates IBM's unique leadership in providing innovative technology coupled with deep industry expertise, trust and security.”