IBM reports 16 percent rise in net income for Q2 2024
Date
7/25/2024 9:53:28 AM
(MENAFN) IBM reported a notable increase in its net income for the second quarter of 2024, which rose by 16 percent to reach USD1.8 billion, according to its financial results statement released on Wednesday. The company's total revenue experienced a modest growth of 2 percent, totaling USD15.8 billion for the period from April to June. This uptick was driven primarily by increases in software and infrastructure revenues, which were up by 7 percent and 1 percent, respectively. However, the consulting segment saw a slight decline of 1 percent, impacting the overall revenue mix.
Chairman and CEO Arvind Krishna highlighted that IBM continues to attract clients seeking its advanced technology and expertise, particularly in the realm of enterprise artificial intelligence (AI). He noted that the company’s business related to generative AI has seen significant growth, with revenues surpassing USD2 billion since the introduction of Watsonx. Watsonx, IBM’s commercial generative AI and scientific data platform, has been a key driver in this growth, leveraging cloud-based solutions to enhance its offerings.
In addition to the strong quarterly performance, IBM has revised its outlook for the full year, now expecting free cash flow to exceed USD12 billion. This upward adjustment reflects the company's confidence in its ongoing financial health and operational efficiency. Following the announcement, IBM’s stock saw a positive reaction in after-hours trading on the New York Stock Exchange, rising by 2.9 percent after the market closed.
The results underscore IBM's continued focus on strategic technology investments and its robust performance in key areas, even as some segments faced challenges. The company's ability to grow its AI business and adjust its financial projections favorably signals a strong position in the technology sector moving forward.
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