IBM quarterly revenue beats on cloud strength

NEW DELHI: IBM reported second-quarter revenue on Monday that beat analysts’ estimates, as a recovery in client spending powered strong growth in its cloud and consulting businesses.

The company is streamlining its business to focus on high-margin cloud computing, with an emphasis on artificial intelligence.

After the pandemic battered existing models of business, more enterprises are adopting “hybrid cloud”, a combination of using their own data centers and leased computing resources to manage and process data.

Sales at IBM’s cloud business rose 13% to $7 billion.

The company’s net income fell to $1.33 billion, or $1.47 per share, in the quarter ended June 30, from $1.36 billion, or $1.52 per share, a year earlier.