IBM Rises After Sales Beat Estimates on Software Unit Gains
- Shares rise after results show Watson unit boosted revenue
- First growth in cognitive solutions unit after reorganization
IBM Rises After 2Q Results Show Software Unit Gain
IBM second-quarter revenue beat analysts’ estimates, boosted by the unit that includes its Watson artificial intelligence platform, in an early indication that the company’s transition to cloud-based software and services is beginning to pay off.
Chief Executive Officer Ginni Rometty is betting on cognitive solutions to drive Big Blue’s businesses toward cloud-based software and services. The segment includes its analytics and security software, as well as many of the 11 acquisitions IBM made in the past year, such as the Weather Co. and Truven Health Analytics. While the quarter’s results exceeded expectations, revenue in older businesses continued to drag on overall sales, which fell for the 17th quarter in a row.