IBM revenues better than expected thanks to focus on cloud systems

International Business Machines' quarterly revenue was better than analysts had expected as the company's focus towards services like their cloud-based systems seems to have reaped dividends.

IBM also stood by its full-year forecast for adjusted earnings of at least $13.50 per share, dispelling any concerns about the impact from Britain's vote to leave the European Union.

CEO Ginni Rometty had pushed the company towards cloud-based services, security software and data analytics this year. The strategy seems to have paid off, with a 12% rise in "strategic imperatives" in Q2.

"For us, it's not about being the biggest cloud, that's not our goal, our goal is to have the best hybrid capabilities," said CFO Martin Schroeter.

Revenue from IBM's cloud services jumped 30%, following a 34% rise in the previous quarter.

IBM said its total revenue dropped 2.8% to $20.24bn for the quarter finishing June 30 from the year previous, hurt by a fall in its traditional hardware businesses.

That was its 17th consecutive revenue decline, but tit was not as big a drop as previously expected.