Kicking off earnings season for big technology companies, IBM (IBM) reported second-quarter results late Monday that beat estimates on the top and bottom lines. IBM stock climbed.
The company reported adjusted earnings of $2.33 a share on revenue of $18.7 billion. Analysts expected IBM to report earnings of $2.31 a share on revenue of $18.3 billion, according to FactSet.
IBM stock was up 3.7%, near 143, during after-hours trading on the stock market today.
Revenue climbed more 3% from the year-ago period, its best showing in more than a year.
IBM Stock: Multiyear Transformation
IBM is in a significant multiyear transformation that has focused on developing and expanding what the company calls an open hybrid cloud platform. The company sees it as a $1 trillion market opportunity. A hybrid cloud architecture means IBM can provide its customers with both a public cloud and a private cloud, which gives a company extra network security.
Total cloud revenue in the quarter climbed 13% to $7 billion.
IBM is also in the process of spinning off its $19 billion managed infrastructure business so it can focus more intently on cloud computing and artificial intelligence. The spinoff is expected to be completed by the end of this year.
IBM stock is up 10.5% this year.
More to follow.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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