IBM CEO Arvind Krishna arrives at the inaugural Artificial Intelligence Insights Forum at the Russell Building on Capitol Hill on Wednesday, September 13, 2023.
Tom Williams | Cq-roll Call Corporation | Getty Images
International Business Machines Corporation Shares of the company rose 5% in after-hours trading on Wednesday after the company reported second-quarter results that beat analysts’ expectations.
Here are the key numbers.
- Earnings per share: Adjusted to $2.43, vs. $2.20 expected, according to LSEG
- income: It was expected to be $15.77 billion, compared with expectations of $15.62 billion, according to LSEG.
IBM said in a report that revenue increased 1.9% from US$15.48 billion in the same period last year. statement. Net income was $1.83 billion, or $1.96 a share, up from $1.58 billion, or $1.72 a share, a year ago.
The company provides hardware, software and consulting services and currently expects free cash flow to exceed $12 billion in 2024. In April, executives called for raising about $12 billion.
The statement quoted CEO Arvind Krishna as saying that the company’s generative artificial intelligence business now exceeds $2 billion. number is over $1 billion in April.
IBM said its software business brought in $6.74 billion in revenue, up 7% and beating StreetAccount’s consensus forecast of $6.49 billion.
The consulting segment contributed $5.18 billion in revenue. The figure fell 0.9% and was below the StreetAccount consensus of $5.23 billion.
IBM’s infrastructure unit, which includes mainframe computers, reported revenue of $3.65 billion, up 0.8% and above market expectations of $3.51 billion.
This quarter, IBM announced its intention to acquire HashiCorp in a deal with an enterprise value of $6.4 billion. IBM also stated Palo Alto Networks have Agree to purchase IBM’s QRadar cloud software and migrate customers to Cortex Xsiam products. Additionally, IBM announced plans for data center infrastructure in montreal.
Despite Wednesday’s post-hours volatility, IBM shares are still up 14% year to date, in line with the S&P 500.
Executives will discuss the results with analysts on a conference call beginning at 5 p.m. ET.
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