04:52 PM EDT, 07/24/2024 (MT Newswires) -- IBM's ( IBM ) second-quarter earnings unexpectedly increased year-over-year as momentum in its software division propelled consolidated revenue above Wall Street's estimates.

Adjusted earnings rose to $2.43 per share for the quarter ended June 30 from $2.18 the year before. The Capital IQ-polled consensus was for $2.17. Revenue increased 2% to $15.77 billion, higher than the Street's view for $15.62 billion.

IBM's ( IBM ) stock was up 3.5% in after-hours trade on Wednesday.

Revenue in the software segment increased 7.1% to $6.74 billion as transaction processing advanced 11%. Consulting sales edged down 0.9% to $5.18 billion while the infrastructure business gained 0.7% to $3.65 billion.

IBM ( IBM ) now expects to have "more than" $12 billion in free cash flow in 2024, compared with prior expectations for about $12 billion.

The company continues to see constant currency revenue growing in line with its mid-single-digit model for 2024. Currency is now set to be a one- to two-point headwind to revenue growth at current rates, versus its prior guidance for a one-and-a-half to two-point impact.

Price: 188.51, Change: +4.49, Percent Change: +2.44