:max_bytes(150000):strip_icc()/GettyImages-2157763309-ac020719b557484898f969607028380c.jpg "Earnings Beat and AI Growth Lift IBM Stock")
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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.