U.S based Tech Company International Business Machine Corp. (IBM) announced its results for the second quarter of the year largely performing better than what analysts had estimated for the company in the quarter.
In the quarter revenue for the cloud business of IBM increased by a significant 30% to $6.3 billion. The company recorded earnings per share of $2.18 which is above the $2.07 analysts were expecting for the company.
Total revenue in the second quarter declined by 5.4% to $18.12 billion. Nonetheless, the revenue was still above the $17.72 billion earlier estimated by analysts.
The company says, if the impact from currency and business divestitures are excluded then revenue only declined by 1.9%.
Demand of cloud computing services has been increasing since outbreak of the pandemic as companies have been shifting to digital operations. It’s this increase which boosted IBM’s cloud computing business propelling the company to register good performance in the quarter.
The CEO of the company Arvind Krishna, said they have had to give special attention to the cloud computing unit since its where traffic was more.
“The trend we see in the market is clear. Clients want to modernize apps, move more workloads to the cloud and automate IT tasks,” said Krishna.