IBM announces earnings for Q2 2016

Yesterday IBM announced its results for Q2 2016.

If we compare with the same quarter in 2015 earnings per share, from continuing operations, decreased 22%. Net income, from continuing operations, decreased 24%.
Consolidated diluted earnings per share down 20% YoY and operating (non-GAAP) diluted earnings per share, from continuing operations, decreased 21%.
These results reflect the continuous shrinking of IBM’s server hardware and z Systems business but, considering investors’ reaction, emerging business such Cognitive Solutions (aka Watson) and cloud (aka BlueMix/Softlayer) are enough to keep Big Blue an appealing investment.

  • Diluted EPS: GAAP of $2.61; Operating (non-GAAP) of $2.95
  • Revenue from continuing operations of $20.2 billion
  • Strategic imperatives revenue of $30.7 billion over the last 12 months represents 38 percent of IBM revenue
    • Strategic imperatives revenue of $8.3 billion in the quarter, up 12 percent year to year
  • Cloud revenue of $11.6 billion over the last 12 months
    • Cloud as-a-service annual run rate of $6.7 billion in the quarter, up 50 percent year to year