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Sep 30, 2024
IBM Q3 2024 Earnings Report
IBM's third-quarter performance was driven by double-digit growth in Software and expanded gross profit margin. The company's generative AI book of business reached over $3 billion. IBM expects fourth-quarter constant currency revenue growth to be consistent with the third quarter and anticipates delivering over $12 billion in free cash flow for the year.
Key Takeaways
IBM's third-quarter 2024 results showed strong performance, led by double-digit growth in Software. The company's generative AI book of business now exceeds $3 billion, and they are confident in achieving over $12 billion in free cash flow for the year.
Software revenue increased by 10 percent.
Gross Profit Margin (GAAP) increased by 190 basis points to 56.3 percent.
Free cash flow was $2.1 billion for the quarter and $6.6 billion year-to-date.
Generative AI book of business reached more than $3 billion.
Revenue by Segment
Forward Guidance
IBM expects fourth-quarter constant currency revenue growth to be consistent with the third quarter and continues to expect more than $12 billion in free cash flow for the full year.
Positive Outlook
- Fourth-quarter constant currency revenue growth expected to be consistent with the third quarter.
- Continued strength in Software is anticipated.
- Currency is expected to be about a half-point headwind to revenue growth in the quarter
- Expects to deliver more than $12 billion in free cash flow for the year.
Challenges Ahead
- Currency is expected to be about a half-point headwind to revenue growth in the quarter
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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