IBM beats on top and bottom lines as CEO Krishna touts 'Super Intelligence' traction
Article excerpt
In this article IBM shares climbed in extended trading on Wednesday after the technology vendor reported better-than-predicted third-quarter results. Here's how the company performed relative to LSEG consensus: IBM's revenue grew about 5% from a year ago, according to a statement. Net income, at $2.19 billion, or $2.30 per share, increased from $1.74 billion, or $1.84 per share, a year ago. Adjusted earnings exclude acquisition-related adjustments. "Our clients are now deploying 'Super Intelligence' in ways that transform entire operating models, instead of simply addressing narrow or novel problems," IBM CEO Arvind Krishna was quoted as saying in a statement. With respect to guidance, IBM called for full-year free cash flow to increase by more than $1 billion. The forecast as of July was a bump of approximately $1 billion. IBM still sees 2026 constant-currency revenue growth between 4% and 5%. In the third quarter, IBM generated $7.80 billion in software revenue $7.80, growing 8% and topping the $7.66 billion consensus among analysts polled by StreetAccount. Consulting revenue, at $5.34 billion, was flat and just below StreetAccount's $5.37 billion consensus. Infrastructure revenue came to $3.70 billion. That was up 4% and higher than the $3.57 billion consensus from StreetAccount. The company's adjusted gross margin, at 58.5%, was narrower than the StreetAccount consensus...
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During the quarter, IBM said it agreed to buy Boeing and General Motors' HRL Laboratories , formerly known as Hughes Aircraft's research division, for an undisclosed sum.
