IBM announces below-expectation revenue increase in Q3

NEW YORK

US-based multinational tech firm IBM’s revenue increased 1% to $15 billion in the third quarter of the year, below expectations, according to the firm on Wednesday.

IBM’s software revenue rose 10%, though its infrastructure revenue declined 7%, and the consulting revenue followed a flat course.

The company’s net profit reached $1.7 billion in the third quarter with a net loss of $330 million.

Meanwhile, IBM lost 36 cents per share in the same period, following a profit of $1.84 per share in the third quarter of 2023.

“Our generative AI book of business now stands at more than $3 billion, up more than $1 billion quarter to quarter,” said IBM CEO Arvind Krishna in the company’s press release.

“Heading into the final quarter of 2024, we expect fourth-quarter constant currency revenue growth to be consistent with the third quarter, with continued strength in Software (and) we are confident in our ability to deliver more than $12 billion in free cash flow for the year, driven by continued expansion of our operating margins,” he added.

*Writing by Emir Yildirim in Istanbul