IBM's software business revenue in the second quarter increased by approximately 10%, surpassing expectations.

After-hours on Wednesday, the stock price of tech giant IBM fell by 5%, despite second-quarter earnings exceeding Wall Street's expectations. According to statements, IBM's revenue in the quarter grew by nearly 8% year-on-year, compared to less than 1% growth in the first quarter. Net profit, including acquisition-related costs, increased from $1.83 billion in the same period last year to $2.19 billion. Software business revenue grew by approximately 10% to $7.39 billion, surpassing analysts' consensus expectation of $7.43 billion from Street Account's survey. Revenue from hybrid cloud business, including Red Hat, increased by 16%.