IBM shares fell 3% in after-hours trading after missing Wall Street's third-quarter revenue expectations. Adjusted earnings per share exceeded expectations. IBM's revenue grew 1.5% year-over-year, but it posted a net loss due to a pension settlement charge. Software revenue grew 10% in the third quarter, surpassing analyst expectations. Its generative AI business grew by over $1 billion in the second quarter, with 80% of the revenue in consulting and the rest in software. The company reiterated its free cash flow target of more than $12 billion for 2024.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02IBM shares fell 3% in after-hours trading after missing Wall Street's third-quarter
00:06revenue expectations. Adjusted earnings per share exceeded expectations.
00:12IBM's revenue grew 1.5% year-over-year, but it posted a net loss due to a pension settlement
00:17charge. Software revenue grew 10% in the third quarter, surpassing analysts' expectations.
00:23Its generative AI business grew by over $1 billion in the second quarter,
00:27with 80% of the revenue in consulting and the rest in software.
00:31The company reiterated its free cash flow target of more than $12 billion for 2024.