IBM reported second-quarter revenue that beat analysts' estimates, as a recovery in client spending powered strong growth in its cloud and consulting businesses.
The company's shares were up two percent at US$140.73 in extended trading.
“With the reopening (of economies) in particular around North America and Western Europe, we're seeing a nice rebound in travel and transportation, automotive, industrial and consumer sectors overall,” IBM CFO James Kavanaugh told Reuters
, adding that more clients spent on digitizing their operations.
After the pandemic battered existing models of business, more enterprises are adopting hybrid cloud, a combination of using their own data centres and leased computing resources to manage and process data.
Sales at IBM's cloud business rose 13 percent to US$7 billion in the reported quarter.
Seeing a US$1 trillion market opportunity in hybrid cloud, IBM has been investing aggressively in cloud and artificial intelligence-focused ventures, while also shedding its slow-growing, yet huge, managed infrastructure business.
Since the beginning of the year, the company has spent about US$3 billion on eight acquisitions, Kavanaugh said.
IBM's net income fell to US$1.33 billion, or US$1.47 per share, in the quarter ended June 30, from US$1.36 billion, or US$1.52 per share, a year earlier.
Total revenue rose three percent to US$18.75 billion, beating estimates of US$18.29 billion, according to IBES data from Refinitiv.