International Business Machines Corp (NYSE: IBM) reported its quarterly results Wednesday after the closing bell. Here’s a glance at the significant metrics from the quarter.Q3 Earnings IBM reported earnings from continuing operations of 34 cents per share for the third quarter, and revenue was $14.968 billion compared with the consensus estimate of $15.07 billion.
Revenue was up 1% year over year. The software business was up 10% year over year, consulting was flat, and infrastructure was down 7%.Cash provided by operations was $2.9 billion, and free cash was $2.1 billion. IBM ended the quarter with $13.197 billion in cash and cash equivalents.“
Our third quarter was led by double-digit growth in Software, including re-acceleration in Red Hat. We continue seeing significant AI momentum because our models are trusted, fit-for-purpose, and lower cost with performance leadership, said IBM chairman and CEO Arvind Krishna.
Our book of business for generative AI is now well above $3 billion, up more than $1 billion quarter to quarter.Check This Out: IBM AI Momentum Meets Earnings Buzz: Is The Stock Ready For A Cloud-Powered Climb?Outlook: IBM expects about 2% constant-currency revenue growth in the fourth quarter. Reaffirmed expectations to reach $12 billion in annual free cash flow for 2024.
We expect fourth-quarter revenue growth, on a constant currency basis, to be similar to the third quarter, again with Software strength. As Krishna said, we’re confident that we will deliver more than $12 billion in free cash flow for the year on the strength of continued expansion of our operating margins.IBM management has scheduled a conference call to report its quarterly results Friday evening, 5 p.m. ET.IBM Price Action: According to Benzinga Pro, IBM’s shares dropped 4.62% after hours to $222 as of writing.