IBM reported first-quarter results late Wednesday that topped earnings estimates but fell slightly short on revenue. IBM stock climbed on the news.
The company reported adjusted earnings of $1.36 a share on revenue of $14.3 billion. Meanwhile, analysts expected IBM to report adjusted earnings of $1.26 a share on revenue of $14.35 billion.
IBM stock jumped 2.9% to 130.02, during after-hours trading on the stock market today.
Total revenue in the first quarter rose 4.4% at a constant currency rate, IBM said.
"In the quarter, we remained focused on the fundamentals of our business, increasing productivity and generating operating leverage," said James Kavanaugh, IBM senior vice president and chief financial officer, in the company's news release. "We are well-positioned to continue investing for growth and returning value to shareholders through dividends."
After years of massive restructuring, IBM remains a leading provider of information technology consulting, mainframes and software applications. But the company has shifted to include artificial intelligence, data analytics and cloud computing services.
"IBM's growth prospects are more appealing to investors and have led to a higher stock price," IBM stock analyst Logan Purk of Edward Jones said in a note to clients.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
