Big Blue (IBM) - Get International Business Machines Corporation Report topped Wall Street's top- and bottom-line expectations, and investors are sending the stock rising in after-hours trading Wednesday.
IBM reported second-quarter earnings of $3.08 per share, topping analyst expectations of $3.04 per share. Revenue of $20 billion also beat Wall Street's $19.85 billion expectations.
The company also issued full-year earnings guidance of $13.80 per share, roughly in line with the market's expectation of $13.78 per share.
Shares were up 0.6% to $145.35 after-hours on Wednesday after rising 0.7% during the day's session. Year to date, shares are down about 6%.
"We delivered strong revenue and profit growth in the quarter, underscoring IBM's progress and momentum in the emerging, high-value segments of the IT industry," said Ginni Rometty, IBM chairman, president and chief executive officer. "More clients are engaging IBM on their journey to the cloud, and deploying IBM Cloud, Watson AI, analytics, blockchain and security solutions. This demonstrates IBM's unique leadership in providing innovative technology coupled with deep industry expertise, trust and security."
One of the bright spots for the company has been its cloud segment, which saw revenue jump 23% over the past 12 months to $18.5 billion.