What caused IBM's revenue surprise in Q2 2024?

IBM's revenue surprise in Q2 2024 can be attributed to several key factors:

1. **Software and Consulting Segment Growth**: IBM's software segment experienced a significant increase of 6% year-over-year, driven by strong demand for hybrid cloud and AI solutions. The company's consulting segment also contributed positively, with revenue reaching $5.19 billion, slightly exceeding the five-analyst average estimate.
2. **Hybrid Cloud and AI Strategies**: IBM's strategic shift towards a hybrid cloud and AI platform has been successful, with the company reporting that its Watsonx enterprise artificial intelligence platform and generative AI initiatives have generated more than $1 billion in revenue over the past year. This indicates a growing customer base and operational momentum in these areas.
3. **Acquisitions and Partnerships**: IBM's acquisition of HashiCorp is expected to boost business for IBM's existing segments, particularly the hybrid cloud and AI offerings. The company's partnership with Palo Alto Networks in the cybersecurity sector could also open up new revenue streams.

In summary, IBM's revenue surprise in Q2 2024 can be attributed to strong performance in its software and consulting segments, strategic shifts towards hybrid cloud and AI, and recent acquisitions and partnerships. These factors collectively contributed to the company's revenue exceeding expectations.