International Business Machines (NYSE: IBM) beat expectations with its second-quarter earnings report last week, reporting solid revenue and adjusted earnings growth. While the consulting segment was a bit of a weak spot, a strong software segment and surprising growth from the infrastructure segment were enough to push revenue at constant currency up 4% year over year.
On top of beating analyst analysts for the second quarter, IBM bumped up its outlook for the full year. The company still expects to produce mid-single-digit revenue growth at constant currency, but it now foresees free cash flow above $12 billion. Previously, IBM's guidance called for approximately $12 billion of free cash flow.
With IBM becoming more confident in its ability to churn out free cash flow, is it time to buy the storied technology stock?
Source Fool.com