IBM Revenues Rise, Led By ‘Strategic Imperatives’

IBM reported revenue from continuing operations of $19.3 billion, as well as strategic imperatives revenue – including cloud and mobile technologies - of $34.1 billion over the trailing 12 months, up 11%. Overall revenue for the first half was up 8%, and up 5% for the second quarter.

"In the second quarter, we strengthened our position as the enterprise cloud leader and added more of the world's leading companies to the IBM Cloud," said Ginni Rometty, IBM chairman, president and chief executive officer for IBM. "We continue to innovate, adding regtech capabilities to our portfolio of Watson offerings; developing solutions based on emerging technologies such as Blockchain; and reinventing the IBM mainframe by enabling clients to encrypt all data, all the time.”

Second-quarter cloud revenues increased 15% to $3.9 billion. Cloud revenue over the last 12 months was $15.1 billion. The annual exit run rate for as-a-service revenue increased to $8.8 billion from $6.7 billion in the second quarter of 2016. Revenues from analytics increased 4%. Revenues from mobile increased 27% and revenues from security increased 4%.

Cognitive Solutions (includes solutions software and transaction processing software) had revenues of $4.6 billion, down 2.5%. Pre-tax income increased at a double-digit rate.

Global Business Services (includes consulting, global process services and application management) saw revenues of $4.1 billion, down 3.7%. Strategic imperatives grew 8% led by the cloud and mobile practices. Technology Services & Cloud Platforms (includes infrastructure services, technical support services and integration software) had revenues of $8.4 billion, down 5.1% (down 3.6% adjusting for currency).  Strategic imperatives, driven by hybrid cloud services, grew 20%.

Systems (includes systems hardware and operating systems software) saw revenues of $1.7 billion, down 10.4%

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