In its recent third quarter results, IBM (NYSE: IBM) came quite close to breaking the streak of 22 straight quarters of revenue declines. However, despite the revenue decline of 0.4%, it handily beat revenue and earnings estimates and looks set for a boost to its stock.

IBM’s Financials

Revenues for the third quarter declined 0.4% to $19.15 billion, but beat analyst estimates of $18.6 billion. Adjusted earnings of $3.3 for the quarter were also better than the Street’s estimates of $3.28. Net income fell to $2.73 billion or $2.92 per share from $2.85 billion or $2.98 per share, a year ago.

By segment, revenue from Cognitive Solutions including Watson increased 4% to $4.4 billion versus analyst estimates of $4.17 billion. Global Business Services revenue was down 2% to $4.1 billion. Technology Services & Cloud Platforms revenue fell 3% to $8.5 billion and Systems revenue was up 10% to $1.7 billion. Global Financing revenue was up 4% to $427 million.

Strategic Initiatives revenue for the second quarter grew 11% to $8.8 billion. Within the segment, revenue from cloud grew 20% to $4.1 billion, analytics grew 5%, mobile grew 7%, and security grew an impressive 51%. On a trailing twelve-month basis, strategic imperatives revenues grew 10% to $34.9 billion with cloud revenues at $15.8 billion.

IBM ended the third quarter of 2017 with $11.5 billion of cash on hand. Debt totalled $45.6 billion, including Global Financing debt of $29.4 billion. IBM’s free cash flow was $2.5 billion. IBM returned $1.4 billion in dividends and $0.9 billion of gross share repurchases to shareholders. At the end of September 2017, IBM had $1.5 billion remaining in the current share repurchase authorization.

IBM reassured the market that it was still forecasting an operating EPS of at least $13.80 for the full year. The market was looking for a full year EPS forecast of $13.75.

IBM expects revenue to grow by $2.8 billion to $2.9 billion in fourth quarter from the third quarter, which translates to fourth-quarter revenue of $22 billion to $22.1 billion, or growth of about 1.4% at the high end.

IBM’s New Offerings

IBM recently started shipping Z14 in mid-September which boosted the mainframe business. Revenue from the mainframe business jumped 60% in the third quarter and is also expected to contribute to revenue growth in the fourth quarter.

During the quarter, IBM also announced its plans to contribute $240 million for an artificial intelligence research lab in collaboration with the Massachusetts Institute of Technology. It also announced plans to collaboration with Dole, Kroger, Unilever, and Walmart around blockchain technology.

IBM’s Acquisitions

In September, IBM announced its plans to acquire Israeli data center company Cloudigo for an undisclosed sum. Cloudigo specializes in building data center infrastructure and is a leading provider of networking services. The Cloudigo team will join IBM’s Cloud Innovation Lab.

Early this month, IBM announced its plans to acquire Sydney-based Vivant Digital business, a boutique digital and innovation agency. Vivant’s talent and expertise is expected to accelerate digital transformations for IBM iX, which is a part of the Global Business Services segment. It will also help it expand into Australia. The CEO and founder of Vivant Anthony Farah will also take on the role of Digital Strategy & iX Leader for IBM Australia and New Zealand. Terms of the deal were not disclosed.

Its stock is trading at $159.53 with a market capitalization of $148.7 billion. It touched a 52-week high of $182.79 in February this year. It had fallen to a 52-week low of $139.13 in August this year.