IBM (NYSE: IBM) has reported revenue decline for 21 straight quarters now. It has tried its hand at disruptive technologies like Blockchain, cloud and security, artificial intelligence (NYSE:AI), and Internet of Things (IoT). But nothing seems to be working yet.
Revenues for the second quarter declined 5% to $19.29 billion, missing the Street’s forecast of $19.46 billion. Adjusted earnings of $2.97 for the quarter were better than the Street’s estimates of $2.74.
The earnings beat was driven by IBM’s continued drive to manage costs. Operating expenses reduced by 20% in the quarter, primarily due to headcount rationalization initiatives. However, it increased its spend on R&D initiatives which grew 5% over the year.