Summary by Futu AI
IBM reported solid Q2 2024 financial results with revenue growing 1.9% to $15.8 billion and net income rising 15.8% to $1.83 billion. Software segment led growth with a 7.1% increase to $6.7 billion, driven by strong performance in Red Hat and Automation. Gross margin expanded 1.8 points year-over-year to 56.8%.The company demonstrated continued momentum in its hybrid cloud and AI strategy, with Software's Hybrid Platform & Solutions revenue up 5.2% and Transaction Processing growing 11.4%. Infrastructure revenue increased 0.7% to $3.6 billion, while Consulting revenue declined slightly by 0.9% to $5.2 billion but showed solid demand for large transformational offerings focused on AI and analytics.Looking ahead, IBM completed the acquisition of StreamSets and webMethods from Software AG for $2.3 billion on July 1, 2024, and announced plans to acquire HashiCorp for $6.4 billion. The company generated $2.1 billion in operating cash flow and $2.6 billion in free cash flow during Q2, returning $1.5 billion to shareholders through dividends while maintaining strong investment in AI, hybrid cloud and quantum computing innovation.
