IBM misses revenue expectations in Q3 2024, leading to 5% drop in shares.

From CNBC: 2024-10-23 16:20:29

IBM fell short of revenue expectations for the third quarter, leading to a 5% drop in shares in extended trading. Revenue was $14.97 billion, below the expected $15.07 billion. The company reported a net loss of $330 million, compared to a net income of $1.70 billion in the year-ago quarter. Q4 revenue growth is expected to be consistent with Q3, which saw a 2% growth at constant currency. IBM’s software revenue increased by about 10% to $6.52 billion, surpassing analyst consensus. Red Hat, acquired in 2019, saw a 14% revenue growth. Consulting revenue declined 0.5% to $5.15 billion. IBM’s infrastructure segment revenue dropped 7% to $3.04 billion. The company’s generative artificial intelligence book of business now exceeds $3 billion. Additionally, IBM launched new services to help Oracle clients extend generative AI, expanded its Oracle product consultants network, acquired Accelalpha, completed the sale of QRadar cloud software assets to Palo Alto Networks, and acquired StreamSets and webMethods from Software AG. IBM shares have climbed 43% YTD, outpacing the S&P 500’s 21% gain. Executives will discuss results on a conference call at 5pm ET.



Read more at CNBC:: IBM earnings Q3 2024