IBM reported second-quarter revenue of US$16.98 billion, beating Wall Street expectations of US$16.59 billion, according to LSEG.

Adjusted earnings per share were US$2.80, also above estimates.

Despite the strong results, IBM’s shares fell 5% in extended trading. This came after its software segment posted US$7.39 billion in revenue, slightly below the US$7.41 billion forecast.

The software division has traditionally been one of IBM’s strongest performers.

The infrastructure segment brought in US$4.14 billion, beating projections of US$3.81 billion, supported by sales of IBM’s AI-optimized mainframe launched in June.

IBM’s “AI book of business” rose to US$7.5 billion, up US$1.5 billion from the previous quarter, though analysts noted a lack of detailed breakdowns.

Consulting sales rose 3%, ending five quarters of decline, as companies sought AI adoption help.

IBM did not provide Q3 guidance, returning to its usual practice after a one-time forecast in April.

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