$IBM (-0.87%) | Q3'24 Earnings Highlights:

🔹 Revenue: $15.0B (Est. $15.05B) 🔴; UP +1.5% YoY

🔹 Operating EPS: $2.30 (Est. $2.22) 🟢

🔹 Free Cash Flow: $2.06B (Est. $2.08B) 🔴; UP +23% YoY

🔹 Non-GAAP Gross Profit Margin: 57.5% (Est. 56.6%) 🟢

FY'24 Guidance:

🔹 Full-year Free Cash Flow: More than $12B

🔸 Q4 Revenue Growth: Expected to align with Q3 performance

🔸 Currency Headwind: Forecast ~0.5% impact in Q4

Segment Performance:

🔸 Software Revenue: $6.52B; UP +9.7% YoY

🔹 Hybrid Platform & Solutions: UP +10%

🔹 Red Hat: UP +14%

🔹 Automation: UP +13%

🔹 Data & AI: UP +5%

🔹 Security: DOWN -1%

🔸 Transaction Processing Revenue: UP +9%

🔹 Consulting Revenue: $5.15B; DOWN -0.5% YoY

🔹 Business Transformation: UP +2%

🔹 Technology Consulting: DOWN -4%

🔹 Application Operations: DOWN -1%

🔸 Infrastructure Revenue: $3.04B; DOWN -7% YoY

🔹 Hybrid Infrastructure: DOWN -9%

🔹 IBM Z: DOWN -19%

🔹 Distributed Infrastructure: DOWN -3%

🔹 Infrastructure Support: DOWN -4%

🔸 Financing Revenue: $181M; DOWN -2.7% YoY

Cash Flow and Balance Sheet:

🔹 Year-to-date Operating Cash Flow: $9.1B; DOWN $0.4B YoY

🔹 Free Cash Flow YTD: $6.6B; UP $1.5B YoY

🔹 Cash & Marketable Securities: $13.7B; UP $0.3B from 2023

🔸 Capital Return: Returned $1.5B to shareholders via dividends

AI and Strategic Developments:

🔸 Generative AI Business: Exceeds $3B, growing $1B quarter-over-quarter

🔸 Software Contribution: Software now accounts for nearly 45% of total revenue

🔸 AI Focus: IBM emphasizes cost-efficient, high-performance AI models

Management Commentary:

🔸 CEO Arvind Krishna: "Our AI business momentum is strong, with trusted, cost-effective models leading the market. We are confident in our ability to achieve our financial targets with continued strength in software and robust cash flow."