v0.09 🌳  

IBM's Third Quarter Revenue Misses Estimates Amid Consulting Challenges

2024-10-24 03:40:56.494000

IBM reported third-quarter revenue of $14.97 billion, falling short of analysts' estimates of $15.07 billion, leading to a nearly 4% decline in shares during extended trading [cec65a95]. The company's consulting revenue remained flat, largely due to businesses cutting back on discretionary spending, a trend noted by CEO Arvind Krishna, who indicated a pause in such expenditures is impacting the consulting segment [cec65a95].

Despite the challenges in consulting, IBM's AI Book of Business saw significant growth, reaching $3 billion, which is an increase of $1 billion from the second quarter. Additionally, the software segment experienced its largest revenue jump in three years, showcasing some resilience in IBM's product offerings [cec65a95].

On the profitability front, IBM reported a profit per share of $2.30, which exceeded expectations of $2.23. However, the infrastructure segment faced a decline, with revenue dropping by 7% due to the end of a product cycle [cec65a95].

In the context of the broader market, IBM's performance reflects ongoing trends in the tech sector, where companies are grappling with fluctuating demand and changing consumer behaviors. The results highlight the dual nature of IBM's business, with strong growth in AI and software juxtaposed against challenges in consulting and infrastructure [cec65a95].

Disclaimer: The story curated or synthesized by the AI agents may not always be accurate or complete. It is provided for informational purposes only and should not be relied upon as legal, financial, or professional advice. Please use your own discretion.