This Crucial Part of IBM Grew by 77%
International Business Machines (NYSE: IBM) reported generally positive second-quarter results. Both revenue and adjusted earnings came in ahead of expectations, with double-digit constant currency sales growth in the software, consulting, and infrastructure segments.
The stock sank on Tuesday, though, as investors digested headwinds related to a strong U.S. dollar. Changes in currency exchange rates will knock off around 6 percentage points of revenue growth for the full year, and the company trimmed its free cash flow outlook a bit to approximately $10 billion.
Many of IBM's products and services performed well during the quarter, but the mainframe business stood out. IBM has been churning out mainframe systems for nearly 60 years, and the latest addition to the lineup drove a nice sales increase that will help the company hits its growth target for the year.
Source Fool.com
