Overview

• IBM reported $16.98 billion in second-quarter revenue and adjusted earnings of $2.80 per share, both above analysts’ expectations.
• Infrastructure revenue climbed to $4.14 billion as demand for AI-upgraded mainframes accelerated client investments.
• Consulting sales increased 3% to $5.31 billion, ending a five-quarter streak of declines as businesses seek AI integration expertise.
• Software segment revenue of $7.39 billion fell short of the $7.41 billion consensus, highlighting continued growth headwinds.
• Despite raising its full-year free cash flow target above $13.5 billion, IBM shares fell about 5% in after-hours trading.