IBM Investors Get First Sign of Turnaround at Big Blue
- Revenue increases for first time in key software unit
- Growth sets up very high expectations for rest of year
IBM Rises After 2Q Results Show Software Unit Gain
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IBM gave investors a sign that Big Blue may finally be turning things around. Now it has to prove it can continue to drive momentum.
Revenue increased for the first time in a key unit -- cognitive solutions, including its Watson artificial intelligence platform -- that the company has been touting as crucial to future growth. The second-quarter results may signal that Chief Executive Officer Ginni Rometty is making good on her promise to shift IBM’s software and services offerings to match customers’ increasing appetite for cloud-based solutions. It’s been an uphill battle. Overall, sales have declined 17 quarters in a row while margins narrowed.