May 20, 2022

Shares in IBM are trading 6% higher after the company posted better-than-expected second quarter financial results, with the effects of the Covid-19 pandemic being felt less by the technology giant than Wall Street had feared.

The company reported earnings of $2.18 per share, down 31% from the same period last year, and $18.1 billion in revenue during the three months ending June 30th. The results far exceed $2.07 per share earnings on $17.7 billion in revenue predicted by analysts.

IBM saw growth in its cloud and hardware businesses, although the effects of the ongoing health crisis were felt in the company’s services operations, as customers hard-hit by the virus looked to cut costs.

Revenues from all cloud businesses were up by 30% at $6.3 billion, whilst Red Hat, the company’s open-source software unit, saw revenues increase by 17%.

The Global Business Services unit generated $3.89 billion in revenue, a downturn of 7% but slightly higher than analysts had predicted.

The report offered the first opportunity to assess IBM’s financial performance under the guidance of Arvind Krishna, who was appointed CEO in April following Ginni Rometty’s retirement.

“We are committed to building, with a growing ecosystem of partners, an enduring hybrid cloud platform that will serve as a powerful catalyst for innovation for our clients and the world,” Krishna said in a press release following the results.

Prior to today’s developments IBM had fallen approximately 5% in 2021, meaning the stock is now more or less flat for the year to date.