Investing.com - Shares in IBM (NYSE:IBM) surged more than 7% in early trade on Wednesday, a day after the company released stronger-than-expected third quarter earnings.
Shares jumped 5% in aftermarket trading on Tuesday, after IBM’s latest earnings report indicated that it was on track to return to growth for the first time in almost six years.
Its revenue has fallen for 22 quarters in a row as weak demand left its legacy hardware and software businesses stagnating.
Third-quarter results showed that IBM’s revenues had slipped for the 22nd straight quarter. But the decline of 0.4% to $19.15 billion was better than the $18.6 billion analysts had been expecting.
Its earnings per share rose 11% to $3.30, compared to an expected $3.28.
Revenue from IBM’s cloud, cybersecurity, and data analytics business rose 11% to $8.8 billion in the quarter, accounting for about 46% of total revenue.
Cloud revenue for the quarter was $4.1 billion, up 20% from last year.