IBM has reported a net income of $1.83bn for the second quarter of 2024 (Q2 2024) that ended 30 June 2024, an increase of 15.8% compared to $1.58bn in the same quarter of the previous year.
In the previous quarter, that is Q1 2024, the US technology company’s net income was $1.6bn.
The company’s earnings per share (EPS) for Q2 2024 were $1.96, compared to $1.72 in Q2 2023, which represents a growth of 14%.
IBM’s segment revenue in Q2 2024
IBM’s total revenue for the reported quarter increased by 2% to around $15.77bn, compared to revenue of $15.47bn earned in Q2 2023. In Q1 2024, IBM reported net revenue of $14.46bn.
IBM’s software unit, which includes hybrid platform and solutions and transaction processing, posted revenues of $6.74bn in Q2 2024, an increase of 7% compared to $6.3bn in Q2 2023.
The data and artificial intelligence (AI) revenue under hybrid platform and solutions was down 3% for the second quarter of 2024.
Red Hat’s revenues in the reported quarter were up by 7% in the reported quarter.
IBM’s consulting business, which includes business transformation, technology consulting, and application operations, reported a 0.9% decrease in Q2 2024 revenues to $5.2bn. The revenues for the unit in Q2 2023 were $5.23bn.
The company’s infrastructure business posted revenues of $3.64bn in the reported quarter, a slight decrease of 0.7%, compared to $3.6bn earned in Q2 2023. The business includes hybrid Infrastructure and infrastructure support.
IBM’s financing businesses posted revenues of $169m in the reported quarter at an 8.6% decline, compared to $185m in Q2 2023.
The company stated that it expects a constant currency revenue growth in line with its mid-single digit model for 2024. It also aims to secure over $12bn in free cash flow.
IBM chairman and CEO Arvind Krishna said: “We had a strong second quarter, exceeding our expectations, driven by growth in both revenue and free cash flow.
“We continue to see that clients turn to IBM for our technology and our expertise in enterprise AI, and our book of business for generative AI has grown to more than two billion dollars since the launch of watsonx one year ago.
“Given our first-half results, we are raising our full-year view of free cash flow, which we now expect to be more than $12bn.”
IBM’s AI developments over the past year
It has been a year since the launch of watsonx and its generative AI strategy. During this time, IBM has integrated AI into various business operations, including tools for hybrid cloud management and platform products in .ai, .data, and .gov.
AI innovations span across segments such as software, with automation products like Apptio and watsonx Orchestrate.
Similar advancements are expected with HashiCorp following its acquisition. Red Hat is embedding AI into OpenShift AI and RHEL AI, while watsonx Code Assistant for Z shows early progress in Transaction Processing.
IBM Z now features real-time AI inferencing, and IBM Consulting is said to be helping clients design and implement AI strategies.
Read more: IBM introducing AI consultants for its consultants
