IBM Q3 Earnings: Software Revenue Jumps 10% On 'Great Momentum' In AI, But Consulting Revenue Comes In Flat, Infrastructure Revenue Falls 7%
Portfolio Pulse from Adam Eckert
IBM reported Q3 earnings with a 1% increase in total revenue, driven by a 10% rise in software revenue, while consulting revenue remained flat and infrastructure revenue fell by 7%. The company missed revenue estimates and reported a loss from continuing operations. IBM's AI business showed strong momentum, and the company expects continued revenue growth and significant free cash flow in Q4.
October 23, 2024 | 8:44 pm
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IBM's Q3 earnings report showed a 1% increase in total revenue, with software revenue up 10%, but missed overall revenue estimates. The company reported a loss from continuing operations and saw a decline in infrastructure revenue. Despite this, IBM's AI business is growing, and the company expects continued revenue growth and strong free cash flow in Q4.
IBM's earnings report showed mixed results with strong software growth but missed revenue estimates and a loss from continuing operations. The decline in infrastructure revenue and flat consulting revenue contributed to the negative market reaction, as seen in the 4.62% drop in share price after hours. However, the strong momentum in AI and positive Q4 outlook provide some optimism.
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