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