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IBM Reports Strong Q2 Earnings, Revenue Beats $15.77 Billion, Stock Rises 4%

Jul 24, 2024, 08:30 PM

IBM reported strong earnings and revenue for the second quarter of 2024, beating analyst estimates. The company’s revenue grew by 2% to $15.77 billion, surpassing the expected $15.61 billion. IBM's artificial intelligence business saw a significant increase in bookings, with its generative AI book growing to over $2 billion following the launch of WatsonX. The software and infrastructure segments performed well, compensating for weaker results in the consulting segment. IBM has raised its full-year free cash flow outlook and expects the software segment to grow by a high-single-digit percentage in 2024, up from the previous mid-single-digit growth forecast. The company's stock rose by 4% in after-hours trading following the announcement. IBM's strong dividend continues to be a key attraction for investors. The company could benefit from Broadcom’s acquisition of VMWare. CEO stated, 'Our book of business for generative AI has grown to more than $2B since the launch of WatsonX one year ago.'