IBM reports revenue increase of 1 percent in Q3, below estimates
Date
10/24/2024 9:47:35 AM
(MENAFN) IBM, the US-based multinational tech firm, reported a modest revenue increase of 1 percent in the third quarter of 2024, reaching USD15 billion, according to the company's announcement on Wednesday. Despite the growth, the revenue fell short of market expectations. The company saw mixed performance across its divisions, with software revenue rising by 10 percent, while infrastructure revenue fell by 7 percent, and consulting services remained flat, reflecting the varied demand across IBM's business sectors.
IBM’s net profit for the third quarter totaled USD1.7 billion, but the company also recorded a net loss of USD330 million. This financial result shows a significant shift compared to the same period last year, where IBM earned USD1.84 per share. For the third quarter of 2024, however, IBM posted a loss of 36 cents per share, highlighting some of the challenges the firm faced in maintaining profitability despite steady revenue growth in key areas.
A major focus for IBM in recent quarters has been its push into generative AI. IBM CEO Arvind Krishna highlighted that the company's generative AI book of business had expanded to more than USD3 billion, growing by over USD1 billion from the previous quarter. This rapid growth signals IBM's increasing strength in the AI sector, positioning the company as a key player in the technology’s integration into enterprise solutions.
Looking ahead to the final quarter of 2024, Krishna expressed optimism about the company’s prospects, forecasting that IBM’s fourth-quarter revenue growth, in constant currency terms, would remain consistent with the third quarter. The CEO also emphasized continued strength in the software division and projected the company would deliver over USD12 billion in free cash flow for the full year, driven by expanding operating margins. This outlook underscores IBM's confidence in sustaining momentum as it moves forward in the evolving tech landscape.
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