Shares of IBM (IBM - Get Report)  were rising nearly 1.6% after hours Wednesday after Big Blue reported second-quarter earnings that came in ahead of expectations.

The company reported earnings of $3.17 per share on revenue of $19.16 billion vs. analyst expectations of revenue of $3.07 per share on $19.16 billion in revenue. 

"In the second quarter, we continued to grow in the high-value areas of the business, led by a strong performance across our Cloud and Cognitive Software segment," said CEO Ginni Rometty. 

Through the second quarter, IBM said it is on track to meet its previously given full-year guidance of $13.90 per share, excluding the impact of cloud company Red Hat.

Rometty also gave specific comments on IBM's $34 billion acquisition of Red Hat, which closed last week.

"With the completion of our acquisition of Red Hat, we will provide the only true open hybrid multicloud platform in the industry, strengthening our leadership position and uniquely helping clients succeed in chapter 2 of their digital reinventions," she said. 

Year to date, IBM shares are up more than 25%, though the stock is down nearly 2% over the past 12 months.