IBM - Why IBM Stock Popped After Tuesday's AI-Themed Earnings Report
2024-07-25 16:41:50 ET
IT veteran International Business Machines (NYSE: IBM) reported second-quarter results on Tuesday evening. Big Blue knocked this quarter out of the park, crushing analyst estimates across the board. As a result, the stock surged as much as 6.7% higher on Wednesday.
IBM's second-quarter sales crept 2% higher year over year, landing at $15.8 billion. On the bottom line, adjusted earnings rose by 11% to $2.43 per diluted share. Your average Wall Street analyst would have settled for earnings near $2.20 per share on roughly $15.6 billion in top-line revenues.
Management explained that software and infrastructure sales came in above expectations while consulting revenues were a bit soft. Artificial intelligence (AI) played a leading role in this success story, as it has done in recent reports.
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Why IBM Stock Popped After Tuesday's AI-Themed Earnings Report