- Overall Revenue: IBM’s Q3 revenue reached $16.33 billion, a 9.1% increase from the previous year, surpassing the estimate of $16.1 billion.
- Software Revenue: Achieved $7.21 billion, growing 10% year-on-year, meeting expectations exactly.
- Consulting Segment: Revenue was $5.32 billion, reflecting a 3.3% rise year-on-year, topping the estimate of $5.2 billion.
- Infrastructure Revenue: Reached $3.56 billion, a significant 17% increase year-on-year, exceeding the estimate of $3.46 billion.
- Financing Revenue: Recorded at $200 million, a 10% increase year-on-year, above the expected $177 million.
- Other Revenue: Fell by 44% year-on-year, amounting to $38 million.
- Adjusted Gross Margin: Improved to 58.7%, compared to 57.5% last year, in line with estimates.
- Operating EPS: Increased to $2.65, exceeding both last year’s $2.30 and the estimated $2.41.
- Free Cash Flow: Reported at $2.37 billion, a 15% rise from last year and above the forecasted $2.21 billion.
- Year Forecasts: IBM projects revenue growth at constant currency above 5%, earlier forecast was at least 5%, against an estimate of 4.89%.
- Free Cash Flow Outlook: Expected to reach $14 billion, up from the previous projection of above $13.5 billion, surpassing the estimate of $13.48 billion.
- AI Business: The AI book of business now exceeds $9.5 billion.
International Business Machines on Smartkarma
Analyst coverage of International Business Machines (IBM) on Smartkarma reveals valuable insights into the company’s strategic moves and industry positioning. According to Baptista Research, IBM has made significant advancements in key areas, such as extending its footprint in enterprise IT services by acquiring Cognitus, a SAP services provider, to strengthen its consulting capabilities, particularly in regulated sectors like aerospace and manufacturing. Additionally, IBM’s partnership with Anthropic in integrating AI models into its software suite signifies a strategic effort to enhance its enterprise AI strategy and solidify its presence in the hybrid cloud and software platforms space.
Moreover, IBM’s emergence as a frontrunner in the quantum computing field, highlighted by the deployment of IBM Quantum System Two in Japan, reflects the company’s commitment to establishing global leadership in quantum infrastructure, as discussed in Baptista Research‘s analysis. Furthermore, IBM’s financial performance, as seen in its $17 billion revenue in the second quarter, showcases notable strengths and areas for cautious attention, indicating a dynamic landscape for the company as it navigates its strategic focus on hybrid cloud, AI, and future technologies.
A look at International Business Machines Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
International Business Machines Corporation (IBM) has received an overall positive outlook according to the Smartkarma Smart Scores. With a Value score of 2, IBM shows potential in terms of its financial performance and market value. The company scores a 3 in Dividend, Growth, Resilience, and Momentum, indicating solid performance in these areas. IBM provides computer solutions using advanced IT, offering a range of technologies, systems, products, and services globally through various channels.
Looking ahead, based on the Smartkarma Smart Scores, International Business Machines appears to have a promising long-term outlook. With respectable scores across key factors like Dividend, Growth, Resilience, and Momentum, IBM demonstrates strength in various aspects of its operations. As IBM continues to provide innovative IT solutions and services, its position in the market is likely to remain steady, supported by its solid performance in multiple critical areas.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
