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IBM’s stock jumped 6% at the end of trading hours on Monday after the company released the Q2 earnings report better than analysts had expected. The company reported $2.18 vs. $2.07 earning per share as expected by analysts and revenue of $18.12 billion vs. $17.72 billion expected. The company also reported an $11.5 Billion Free Cash Flow.

Cloud and Cognitive Software was the biggest contributor to IBM’s Q2 earnings with a $5.7 Billion revenue and a growth of 5%. Global Technology Services contributed $6.3 Billion in revenue with a gross margin of 34.2%. Global Business Services, which consisted of application management, consulting, and global process services, contributed $3.9 Billion in revenue with a gross margin of 28.4%. The system brought $1.9 Billion in revenue with a gross margin of 6%.

Arvind Krishna, who earned his Ph.D. from the University of Illinois at Urbana-Champaign, commented that IBM would expand the ecosystem of partners into developing a hybrid cloud platform based on open technologies as the catalyst of innovation. The hybrid technologies allow companies to access their private and public clouds seamlessly to give the optimal cloud flexibility for the application.

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