Trader Talk

IBM Services: The Real Surprise

IBM up about 3 percent after the bell to a new multi-year high on earnings that beat expectations.

The surge is not just about the beat -- but how they did it: hardware was flat, as expected (there were fears it would be weaker), software was strong, and services (more than half of revenue) were very strong.

There had been fears about services, since about 25 percent of the revenue from services was from financial firms -- and some worried that the financial firms might have cut back on their use of IBM's services. Didn't happen.

IBM also raised its full-year guidance; S&P futures up about 5 points on this.

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