Despite missing the mark in its consulting division, IBM's CEO Arvind Krishna remains confident in the company's revenue and free cash flow expectations for the year. He attributes this confidence to the solid growth in their software and consulting businesses, driven by customer appreciation for IBM's artificial intelligence and data platform, WatsonX, and its hybrid cloud platforms. The company also reiterated its full-year guidance, expecting revenue growth of between 3% and 5%, with about $10.5 billion in free cash flow.
Key takeaways:
- IBM Corp. reported third-quarter financial results that exceeded analyst's expectations, with earnings of $2.20 per share and a revenue of $14.75 billion.
- The company's software business unit performed the best, delivering $6.27 billion in revenue, an 8% increase from a year earlier.
- IBM's consulting division generated $4.96 billion in sales, a 6% increase from a year earlier, but fell short of the consensus of $5.11 billion.
- IBM's management expects a revenue growth of between 3% and 5% for the next quarter, with about $10.5 billion in free cash flow.