International Business Machines (IBM) exceeded analysts’ expectations for the second quarter, leading to a rise in shares during aftermarket trading. CEO Arvind Krishna attributed the positive performance to the company’s expanding artificial intelligence (AI) business.
The company reported diluted earnings per share of $1.96 on revenue of $15.8 billion, surpassing the projections of $1.74 per share on revenue of $15.6 billion, according to Visible Alpha. Software revenue also saw a 7% increase, reaching $6.7 billion. IBM reiterated its full-year projection of mid-single-digit revenue growth.
“We continue to see that clients turn to IBM for our technology and our expertise in enterprise AI, and our book of business for generative AI has grown to more than $2 billion since the launch of watsonx one year ago,” Krishna stated.
Following the announcement, IBM’s shares rose about 3% after the closing bell. As of Wednesday’s close, IBM’s stock had increased approximately 13% in 2024.