IBM Beats Q3 Expectations With $17.1 Billion Revenue
IBM exceeded Wall Street expectations for the third quarter, reporting $17.1 billion in revenue driven by strong software growth and AI tailwinds.
IBM reported third-quarter revenue of $17.1 billion, surpassing Wall Street projections of $16.8 billion. The company's software division drove much of this growth, bringing in $7.8 billion against an expected $7.64 billion. Operating earnings per share reached $2.95, beating the $2.86 estimate, while cash flow for the period totaled $3 billion.
CEO Arvind Krishna attributed the software rebound to AI tailwinds and a strategic decision to constrain capital expenditure while increasing reliance on partners. While software performance was strong, analysts observed a relative slowdown in the company's consulting business.
IBM expects future acceleration through AI-first projects within its consulting unit. The company also plans to drive growth by facilitating infrastructure upgrades for legacy companies using Red Hat and Confluent products.
