Summary by Moomoo AI
IBM delivered mixed Q3 2024 results with revenue up 2% to $15.0 billion, driven by accelerated Software growth of 10% including Red Hat up 14%. The company's generative AI business surpassed $3 billion inception-to-date, up $1 billion quarter-over-quarter, with roughly 20% from software and 80% from consulting signings.Operating pre-tax income grew 8% with margins expanding 100 basis points, while free cash flow reached $6.6 billion year-to-date, up $1.5 billion year-over-year. Software performance was strong across key platforms, with Hybrid Platform & Solutions ARR reaching $14.9 billion, up 11%. However, Consulting remained flat amid macro uncertainties, while Infrastructure declined 7% due to product cycle dynamics.For Q4 2024, IBM expects revenue growth similar to Q3 levels, with Software projected at low double-digit growth led by Red Hat. The company raised its full-year operating pre-tax margin expansion target to about one point and maintained its free cash flow guidance above $12 billion. Management expressed confidence in growth trajectory for 2025, supported by Software acceleration, Red Hat opportunities, new mainframe cycle, and GenAI positioning.
