Core Insights - IBM's second-quarter results exceeded Wall Street projections, but shares fell by up to 5% in extended trading [1] - Revenue increased nearly 8% year-over-year, with net income rising to $2.19 billion or $2.31 per share [1] Revenue Breakdown - Software revenue grew about 10% to $7.39 billion, slightly below the $7.43 billion consensus [2] - Hybrid cloud revenue, including Red Hat, showed a 16% increase [2] - Consulting revenue rose almost 3% to $5.31 billion, surpassing the $5.16 billion consensus [2] - Infrastructure revenue increased by 14% to $4.14 billion, exceeding the $3.75 billion average estimate [2] Future Projections - IBM announced a projection of over $13.5 billion in free cash flow for 2025 and expects at least 5% revenue growth at constant currency for the year [3] - As of the latest close, IBM shares have risen 28% in 2025, compared to an 8% gain in the S&P 500 index [3] Earnings Performance - Adjusted earnings per share were $2.80, compared to the expected $2.64 [5] - Total revenue reported was $16.98 billion, exceeding the $16.59 billion expectation [5]