IBM just released its second quarter earnings today. Big Blue reported $26.7 billion in revenue for the quarter which is up 15 percent (or up 5 percent adjusting for currency). Diluted earnings came in at $3.00 per share, compared with diluted earnings of $2.62 per share in the first quarter of 2010, an increase of 18 percent. Analysts expected $3.02 per share
on revenue of $25.4 billion.
Second-quarter net income came in at $3.7 billion compared with $3.4 billion in the second quarter of 2010, an increase of 8 percent. Operating (non-GAAP) net income was $3.8 billion compared with $3.4 billion in the second quarter of 2010, an increase of 11 percent.
Samuel J. Palmisano, IBM chairman, president and chief executive officer said in a release, In the second quarter our long-term strategic investments in the company’s growth initiatives again helped drive strong revenue performance…Hardware, software and services revenue grew at double digits, and we achieved strong profit and free cash flow growth.
Palmisano also said that is raising its full-year GAAP diluted earnings per share to at least $12.87 from $12.73, and raising operating earnings per share expectations to $13.25. per share.
Revenues from the Software segment were $6.2 billion, an increase of 17 percent (10 percent, adjusting for currency). Revenues from IBM’s key middleware products, which include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $3.9 billion, an increase of 21 percent (14 percent, adjusting for currency) versus the second quarter of 2010. Revenues from the WebSphere family of software products increased 55 percent year over year. Information Management software revenues increased 18 percent. Revenues from Tivoli software increased 9 percent. Revenues from Lotus software increased 12 percent, and Rational software increased 4 percent.
IBM’s hardware revenues totaled $4.7 billion for the quarter, up 17 percent (12 percent, adjusting for currency) from the second quarter of 2010. IBM ended the second-quarter 2011 with $11.8 billion of cash on hand and generated free cash flow of $3.4 billion, up approximately $350 million year over year.