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Sep 30, 2023
IBM Q3 2023 Earnings Report
IBM's Q3 2023 earnings were released, revealing revenue growth driven by Software and Consulting, alongside strong profit and cash generation.
Key Takeaways
IBM reported a 4.6% increase in revenue to $14.8 billion, led by Software and Consulting. The company's focus on fundamentals drove profit margin expansion and strong cash generation. IBM remains confident in its revenue and free cash flow growth expectations for the full year.
Revenue reached $14.8 billion, showing a 4.6% increase (3.5% at constant currency).
Software revenue increased by 8% (6% at constant currency).
Consulting revenue grew by 6% (5% at constant currency).
Free cash flow was $1.7 billion, up $0.9 billion year over year.
IBM
IBM
IBM Revenue by Segment
Forward Guidance
IBM continues to expect constant currency revenue growth of three percent to five percent and about $10.5 billion in free cash flow for the full year 2023.
Positive Outlook
- The company continues to expect constant currency revenue growth of three percent to five percent.
- The company continues to expect about $10.5 billion in free cash flow.
- Free cash flow is expected to be up more than $1 billion year to year.
Challenges Ahead
- Currency is expected to be about a one-point headwind to revenue growth.