IBM has released its financial results for the second quarter of the year, reporting stellar profits despite the current financial climate.
Overall, the company saw non-GAAP earnings per share of $2.18, with revenues of $18.1 billion, representing a 5.4 percent decline year-on-year but surpassing analyst estimates.
As reported by ZDNet, the company’s cloud business performed particularly well, with revenue for the segment up by almost a third (30 percent), hitting $6.3 billion for the quarter.
Revenue for cloud and cognitive software (i.e. Red Hat, Cognitive Applications and Transaction Processing Platforms) also rose three percent to $5.7 billion, while Red Hat revenue rose 17 percent.
Meanwhile, Global Business Services revenue (Consulting, Application Management and Global Process Services etc.) fell seven percent to $3.9 billion.
"Our prudent financial management in these turbulent times enabled us to expand our gross profit margin, generate strong free cash flow and improve our liquidity position," said James Kavanaugh, SVP and CFO at IBM.
"We have the financial flexibility to continue to invest in our business and return value to our shareholders through our dividend policy."
Going forward, analysts expect IBM to report third quarter non-GAAP earnings of $2.52 per share on revenue of $17.34 billion.