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IBM Cloud Demand Lifts Sales to Best Quarter in Three Years

  • Sales rose 3% to $18.7 billion during the second quarter
  • IBM to continue pivot to hybrid-cloud without Jim Whitehurst

Photographer: Scott Eells/Bloomberg

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International Business Machines Corp. reported its biggest increase in revenue in three years on the back of strong cloud-computing demand, beating analysts’ estimates and signaling Chief Executive Officer Arvind Krishna’s pivot to the fast-growing market is starting to pay off. The shares jumped as much as 4.3% in extended trading in New York.

Sales rose 3.4% to $18.7 billion for the three months ending June 30, the Armonk, New York-based company said Monday in a statement. That was well ahead of the $18.3 billion analysts had forecast, on average, according to data compiled by Bloomberg.