Financial Data and Key Metrics - Revenue for Q3 2024 was $15 billion, with adjusted EBITDA of $3.8 billion, operating pretax income of $2.5 billion, and operating diluted earnings per share of $2.30 [14] - Free cash flow for the first nine months of 2024 was $6.6 billion, up $1.5 billion year-over-year [14][17] - Revenue growth for the quarter was 2% at constant currency, with software growth accelerating to 10% [14] - Consulting revenue was flat, while infrastructure revenue declined by 7% [14][15] - Operating pretax margin expanded by 100 basis points, driving 8% operating pretax profit growth [14] Business Line Performance - Software revenue growth accelerated to 10%, driven by Red Hat (14% growth), automation, data and AI, and transaction processing [14][18] - Consulting revenue was flat, impacted by macroeconomic uncertainty and client reprioritization of spending [14][22] - Infrastructure revenue declined by 7%, with hybrid infrastructure down 9% and infrastructure support down 3% [25] - Red Hat's ARR for hybrid platform and solutions reached $14.9 billion, up 11% year-over-year [7][20] Market Performance - Red Hat's global footprint expanded, with OpenShift ARR growing from $100 million to $1.3 billion since acquisition [7] - The company's generative AI book of business exceeded $3 billion, with $1 billion added quarter-over-quarter [8] - Strong collaborations were announced with NatWest, Telefonica, Samsung SDS, and Toyota Systems [11] Strategic Direction and Industry Competition - The company is repositioning its portfolio towards higher growth, higher margin businesses, focusing on hybrid cloud and AI [4] - Red Hat's acquisition has been a key driver of growth, with revenue doubling to $6.5 billion since the acquisition [7] - The company is investing in emerging technologies, including quantum computing, with the opening of Europe's first IBM Quantum Data Center [12] Management Commentary on Operating Environment and Future Outlook - The macroeconomic environment remains uncertain, with geopolitical issues, elections, and inflation impacting discretionary spending [5] - The company expects low double-digit revenue growth for software in Q4, led by Red Hat and transaction processing [27] - Consulting revenue is expected to remain flat in Q4, with infrastructure revenue impacted by product cycle dynamics [28] - The company raised its operating pretax margin expansion expectation to 1 point for the full year [29] Other Important Information - The company closed the Palo Alto QRadar transaction, generating a pretax gain of $350 million [16] - Year-to-date, the company returned $4.6 billion to shareholders in the form of dividends [17] - The company expects to achieve $3.5 billion in annual run rate savings by the end of 2024 [29] Q&A Session Summary Question: How does the upward inflection in growth for 2025 pan out for Software and Consulting? [33] - Software growth is expected to be driven by Red Hat, generative AI products, and automation, with potential for 3 points of growth [34] - Consulting growth is expected to improve in the second half of 2025, driven by generative AI and strategic partnerships [36] Question: Why should 2025 growth not be viewed as a one-off? [37] - The company has rebuilt its portfolio to be sustainable, with 80% of software revenue on a recurring basis and strong organic growth [40] - Consulting signings are expected to improve, with generative AI projects driving future growth [42] Question: How is the Consulting AI book of business impacting revenue? [44] - The Consulting AI book of business is growing, with $1 billion added quarter-over-quarter, but revenue yield is lower due to longer durations [46] - The company expects the AI pipeline to turn into revenue, driving growth in 2025 [48] Question: What is the sustainability of the 30% software margin? [59] - The 30% software margin is driven by strong revenue growth, productivity initiatives, and strategic focus on hybrid cloud and AI [61] Question: When will Consulting AI projects turn from cannibalizing traditional business to becoming incremental? [62] - Consulting AI projects are expected to start contributing more significantly in the second half of 2025, as the company wraps up short-term discretionary spending pullbacks [65] Question: What is the customer feedback on the Granite models? [66] - Customers appreciate the cost efficiency and practicality of the Granite models, which are 90% more cost-efficient and can be trained in weeks [66][68]

IBM (IBM) reported $14.97 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 1.5%. EPS of $2.30 for the same period compares to $2.20 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $15.19 billion, representing a surprise of -1.46%. The company delivered an EPS surprise of +1.32%, with the consensus EPS estimate being $2.27.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

IBM (IBM) came out with quarterly earnings of $2.30 per share, beating the Zacks Consensus Estimate of $2.27 per share. This compares to earnings of $2.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.32%. A quarter ago, it was expected that this technology and consulting company would post earnings of $2.16 per share when it actually produced earnings of $2.43, delivering a surprise of 12.50%.Over the last four quarters, ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

IBM CEO Arvind Krishna appears at the World Economic Forum in Davos, Switzerland, on Jan. 16, 2024.IBM shares moved 5% lower in extended trading on Wednesday after the hardware, software and consulting provider fell short of Wall Street's revenue expectations for the third quarter.Here's how the company did in comparison with LSEG's consensus:Earnings per share: $2.30 adjusted vs. $2.23 expectedRevenue: $14.97 billion vs. $15.07 billion expectedIBM's overall revenue increased 1.5% year over year, according ...

Exhibit 99.1 (1) IBM RELEASES THIRD-QUARTER RESULTS Accelerated Software revenue growth, expanded gross profit margin, and strong free cash flow ARMONK, N.Y., October 23, 2024 . . . IBM (NYSE: IBM) today announced third-quarter 2024 earnings results. "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 ...

Accelerated Software revenue growth, expanded gross profit margin, and strong free cash flowARMONK, N.Y., Oct. 23, 2024 /PRNewswire/ -- IBM (NYSE: IBM) today announced third-quarter 2024 earnings results."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 bi ...

CHICAGO - MAY 10: An IBM sign stands outside an IBM building May 10, 2005 in downtown Chicago, ... [+] Illinois. IBM has recently announced job cuts in its European operation of 10,000 to 13,000 workers, mainly in Britain, France, Germany and Italy. (Photo by Tim Boyle/Getty Images)Getty ImagesIBM Inc. scheduled to report earnings after Wednesday’s close. The stock just hit a record high near $237/share and is currently trading near that level. The stock is prone to big moves after reporting earnings and ca ...

International Business Machines (NYSE: IBM ), also known as IBM, has roughly doubled in price since its October 2023 low. Does this valuation surge make sense? Not really. In my view, IBM is a solid company, but the stock offers investors a wholeI objectively search for undervalued stocks of any size across a wide variety of industries using quantitative methods that I've thoroughly backtested for success. I believe the numbers are more important than the story (most of the time), as they tend to paint a mo ...

IBM Guardium Data Security Center provides unified, SaaS-first data security capabilities amid hybrid cloud, AI, and quantum transformationNew software part of IBM's comprehensive approach for protecting hybrid cloud and AIARMONK, N.Y., Oct. 22, 2024 /PRNewswire/ -- As hybrid cloud-, AI-, and quantum-related risks upend the traditional data security paradigm, IBM (NYSE: IBM) is launching IBM Guardium Data Security Center – allowing organizations to protect data in any environment, throughout its full lifecy ...