IBM reported stronger-than-expected second-quarter results, fueled by robust performance in its consulting and infrastructure segments. The tech giant posted a 3% increase in overall revenue year-over-year, with total earnings reaching $15.8 billion.
Consulting services remained a key growth engine, climbing 6% as enterprises continued investing in digital transformation and AI adoption. Infrastructure revenue jumped 4%, driven primarily by demand for IBM’s zSystems mainframes and hybrid cloud infrastructure.
Net income rose to $1.7 billion, up from $1.5 billion in the same period last year. CEO Arvind Krishna highlighted the momentum in enterprise AI and hybrid cloud services as major contributors to this growth. “Clients are embracing IBM’s AI capabilities and consulting expertise to modernize operations and accelerate innovation,” he said during the earnings call.
The software segment remained steady, contributing $6.3 billion in revenue, with continued interest in Red Hat products and automation solutions. IBM reaffirmed its full-year outlook, expecting mid-single-digit revenue growth and improved free cash flow.
With a strategic focus on AI, hybrid cloud, and enterprise modernization, IBM’s strong Q2 results reflect its pivot toward higher-value services amid the evolving tech landscape.
