IBM delivered second quarter revenue growth of 4 percent from a year ago in a sign that the company may be turning the corner.
Big Blue reported non-GAAP second quarter earnings of $3.08 a share on revenue of $20 billion. Wall Street was expecting IBM to deliver non-GAAP second quarter earnings of $3.04 a share on revenue of $19.85 billion. IBM delivered its second consecutive quarter of revenue growth following a solid first quarter.
The company said its cloud as-a-service revenue was at an annual run rate of $11.1 billion. IBM also showed revenue growth of 15 percent for its "strategic imperatives" revenue, which includes analytics, security, cloud and Watson.
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Hardware, led by IBM Z systems, delivered the strongest revenue growth in the quarter.
CEO Ginni Rometty said IBM is making progress in "high-value segments of the IT industry."
IBM also noted that it was performing well in hybrid cloud efforts as well as analytics, which saw revenue up 7 percent.
By unit, IBM's cognitive solutions division had revenue of $4.6 billion, flat compared to a year ago.