International Business Machines released its latest earnings reports after closing bell tonight. IBM posted non-GAAP earnings of $2.95 per share on $20.2 billion in revenue, against the consensus estimates of $2.89 per share in earnings on $20.03 billion in sales. Adjusted earnings declined 23% year over year, while revenues declined 3%.

IBM

IBM records strong cloud growth

International Business Machines reported GAAP earnings of $2.61 per share, representing a 27% year over year decline. Strategic Imperatives revenue rose 12% to $8.3 billion, while Cloud revenue increased 30% to $3.4 billion. IBM’s cloud-as-a-service annual run rate rose 50% year over year to $6.7 billion. Mobile revenues rose 43%, while security revenues climbed 18%.

Cognitive Solutions revenue rose 3.8% after adjusting for currency to $4.7 billion, while Global Business Services revenues declined 2.5% on a currency-adjusted basis to $4.3 billion. IBM’s Technology Services and Cloud Platforms segment revenue was flat on a currency-adjusted basis at $8.9 billion, while Systems revenue fell 23.3% after adjusting for currency to $2 billion. Global Financing revenue fell 10% on a currency-adjusted basis to $424 million.

“IBM is pioneering new business opportunities beyond the traditional IT marketplace,” IBM Chairman, President and CEO Ginni Rometty said in a statement. “In the second quarter we delivered double-digit revenue growth in our strategic imperatives, driven by innovations in areas such as analytics, security, cloud video services and Watson Health, all powered by the IBM Cloud and differentiated by industry. And we continue to invest for growth with recent breakthroughs in quantum computing, Internet of Things and Blockchain solutions for the IBM Cloud.”

IBM maintains full-year outlook

IBM still expects non-GAAP earnings for the full year to be at least $13.50 per share and GAAP earnings of at least $12.23 per share. The company had $10.6 billion in cash on hand at the end of the quarter. Debt stood at $44.5 billion. IBM repurchased $800 million worth of shares and paid out $1.3 billion in dividends to shareholders. As of the end of June, the company had $3.9 billion left on its share repurchase authorization.

Shares of International Business Machines surged by as much as 3.8% to $165.94 in after-hours trades.