IBM Corp reported a modest revenue increase of 1.5% year-on-year to $14.968 billion for the third quarter of 2024, with a gross profit margin improvement of 1.9 points to 56.3%. However, the company faced a net loss of $330 million, including a significant one-time, non-cash, pre-tax pension settlement charge of $2.7 billion related to its pension obligations. Excluding this charge, operating (non-GAAP) earnings were $2.155 billion, a 6.1% increase from the previous year, and diluted operating (non-GAAP) earnings per share rose by 4.5% to $2.30. The company's cash generation remained strong, with $2.9 billion from operations and $2.1 billion in free cash flow. IBM's business development saw the completion of eight acquisitions, including StreamSets and webMethods, and the announcement of the intent to acquire...Show More

IBM Corp reported a modest revenue increase of 1.5% year-on-year to $14.968 billion for the third quarter of 2024, with a gross profit margin improvement of 1.9 points to 56.3%. However, the company faced a net loss of $330 million, including a significant one-time, non-cash, pre-tax pension settlement charge of $2.7 billion related to its pension obligations. Excluding this charge, operating (non-GAAP) earnings were $2.155 billion, a 6.1% increase from the previous year, and diluted operating (non-GAAP) earnings per share rose by 4.5% to $2.30. The company's cash generation remained strong, with $2.9 billion from operations and $2.1 billion in free cash flow. IBM's business development saw the completion of eight acquisitions, including StreamSets and webMethods, and the announcement of the intent to acquire HashiCorp. Looking ahead, IBM plans to continue investing in AI, hybrid cloud, and quantum computing, expecting to recognize a one-time pension settlement charge of approximately $0.4 billion in Q4 2024 due to a transaction with IBM Canada's pension plan. Despite macroeconomic challenges, IBM's diversified portfolio and strategic partnerships position it well for capturing market opportunities.