IBM reported second-quarter results on July 23, with revenue rising just 1% year over year to $17.2 billion and adjusted earnings per share coming in at $2.93, both below expectations. The company also lowered its full-year revenue growth forecast, revising guidance from “more than 5%” to a range of 4% to 5%. A sharp drop in Z series mainframe sales weighed on the quarter, with revenue from that segment falling 42% from a year earlier and dragging infrastructure revenue down 7%. Software was a relative bright spot, posting 5% year-over-year growth. Despite the weaker results and the lower annual outlook, IBM shares rose about 3% in after-hours trading. BlockBeats said the move came after the company had already issued an earnings warning a week earlier, which appears to have tempered the market reaction to the report.
IBM reported its second-quarter results on July 23, showing revenue of $17.2 billion, up about 1% from a year earlier. Adjusted earnings per share came in at $2.93. Both figures were below expectations.
The company also lowered its full-year revenue growth outlook, cutting guidance from “more than 5%” to a range of 4% to 5%.
Mainframe weakness hit infrastructure
Z series mainframe revenue fell 42% year over year, weighing on the quarter and pushing infrastructure revenue down 7%.
Software held up better, with revenue in that segment rising 5% from a year earlier.
Shares rose in after-hours trading
According to BlockBeats, IBM shares gained about 3% after the results were released. The company had issued an earnings warning a week earlier, which came before the latest report.
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