On Monday evening, IBM (IBM, Financial) reported its second quarter earnings results. The company reported revenue of $20.24 billion, which was down 2.7% from the comparable quarter and beat analysts’ average estimate by $210 million. Earnings for the quarter were $2.95 which also beat analysts’ average estimate by 6 cents.
As the market for cloud technology continues to expand, IBM increasingly continues to be a market leader. Cloud technology helped the firm to beat revenue and earnings estimates for the quarter. Its significant advantages in cloud technology include its cognitive capabilities which are linked throughout the company’s services to the cloud.
Highlights for the firm in cloud for the second quarter included a cloud as-a-service annual run rate increase of 50% from the comparable quarter at $6.7 billion and a 30% increase in total cloud revenues for the quarter.
IBM chairman, president and chief executive officer, Ginni Rometty, had the following comments about the firm’s cloud growth: "IBM continues to establish itself as the leading cognitive solutions and cloud platform company. In doing so, IBM is pioneering new business opportunities beyond the traditional IT marketplace."
In the second quarter, the firm’s direct cognitive solutions business revenue increased 4% from the comparable quarter. Technology services and cloud platforms remained steady at $8.86 billion.
In a CNBC report, following the firm’s earnings announcement, Brian White of Drexel Hamilton had the following insights:
Disclosure: I do not directly own any shares of IBM.
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