Salem Radio Network News Monday, July 26, 2021

Business

IBM quarterly revenue beats on cloud strength

(Reuters) – IBM reported second-quarter revenue on Monday that beat analysts’ estimates, as a recovery in client spending powered strong growth in its cloud and consulting businesses.

The company is streamlining its business to focus on high-margin cloud computing, with an emphasis on artificial intelligence.

After the pandemic battered existing models of business, more enterprises are adopting “hybrid cloud”, a combination of using their own data centers and leased computing resources to manage and process data.

Sales at IBM’s cloud business rose 13% to $7 billion.

The company’s net income fell to $1.33 billion, or $1.47 per share, in the quarter ended June 30, from $1.36 billion, or $1.52 per share, a year earlier.

Total revenue rose 3% to $18.75 billion, beating estimates of $18.29 billion, according to IBES data from Refinitiv.

(Reporting by Chavi Mehta in Bengaluru; Editing by Shounak Dasgupta)

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