International Business Machines Corp
Q3 Earnings: IBM reported third-quarter revenue of $14.968 billion, missing the consensus estimate of $15.07 billion, according to Benzinga Pro. The company reported quarterly loss from continuing operations of 34 cents per share.
Total revenue increased 1% year-over-year. Software revenue was up 10% year-over-year, consulting revenue was flat and infrastructure revenue was down 7%.
Cash flow from operations totaled $2.9 billion in the quarter. Free cash flow came in at $2.1 billion. IBM ended the quarter with $13.197 billion in cash and cash equivalents.
"Our third-quarter performance was led by double-digit growth in Software, including a re-acceleration in Red Hat. We continue to see great momentum in AI as our models are trusted, fit-for-purpose, and lower cost, with performance leadership. Our generative AI book of business now stands at more than $3 billion, up more than $1 billion quarter to quarter," said Arvind Krishna, chairman and CEO of IBM.
Outlook: IBM expects fourth-quarter constant currency revenue growth of approximately 2%. The company also reiterated expectations for generating $12 billion in free cash flow for full year 2024.
"Heading into the final quarter of 2024, we expect fourth-quarter constant currency revenue growth to be consistent with the third quarter, with continued strength in Software. We are confident in our ability to deliver more than $12 billion in free cash flow for the year, driven by continued expansion of our operating margins," Krishna said.
IBM management will hold a conference call to discuss the company's quarterly results at 5 p.m. ET.
IBM Price Action: IBM shares were down 4.62% after hours at $222 at the time of publication, according to Benzinga Pro.
