Overview

• IBM reported second-quarter revenue of $16.98 billion, up nearly 8 percent year-over-year, and adjusted EPS of $2.80, both exceeding analyst forecasts.
• Infrastructure revenue rose to $4.14 billion as customers upgraded to the AI-optimized z17 mainframe launched in June.
• Software sales climbed 10 percent to $7.39 billion, driven by 16 percent growth in hybrid cloud offerings.
• Consulting revenue rebounded with a 3 percent gain to $5.31 billion, ending five straight quarters of declines as firms seek AI integration expertise.
• IBM’s AI book of business expanded to $7.5 billion and the acquisition of AI consultancy Hakkoda accompanied its decision to lift full-year free cash flow guidance above $13.5 billion.