IBM's quarterly income tops expectations

IBM shares advanced in extended trading after the tech giant turned in quarterly income estimates ahead of estimates on the Street.

IBM reported second-quarter net income of $2.5bn, or $2.81 per share, ahead of the $2.4bn turned in at the same point a year earlier. Adjusted earnings came to $3.17 a share.

However, revenues slipped from $20bn to $19.16bn - just shy of the $19.17bn forecast by analysts.

IBM said cloud and cognitive services revenue had risen to $5.65bn from $5.47bn - ahead of the $5.55bn predicted by analysts.

Chairman Ginni Rometty said: "n the second quarter, we continued to grow in the high-value areas of the business, led by a strong performance across our Cloud and Cognitive Software segment."

IBM also reiterated its full-year adjusted earnings expectation of "at least" $13.90 per share.

As of 2145 BST, IBM shares had picked up 2.29% in extended trading to $146.35 each.