IBM Mainframes Lag as Software and Cloud Sales Fuel Growth

IBM's second-quarter revenue was impacted by weakness in its mainframe business, but growth in software and cloud sales helped to support the company's overall outlook.

The company reported a 3% year-over-year decline in mainframe revenues, driven by lower demand from certain customers. However, IBM's software business saw a 7% increase in revenue, while its cloud segment experienced a 10% rise.

Despite the weakness in mainframes, IBM's overall revenue was essentially flat compared to the same period last year, with a slight decline of 1%. The company's earnings per share came in at $2.18, beating analyst expectations by 4 cents.