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$IBM (-0,87%) | Q3'24 Earnings Highlights:


๐Ÿ”น Revenue: $15.0B (Est. $15.05B) ๐Ÿ”ด; UP +1.5% YoY

๐Ÿ”น Operating EPS: $2.30 (Est. $2.22) ๐ŸŸข

๐Ÿ”น Free Cash Flow: $2.06B (Est. $2.08B) ๐Ÿ”ด; UP +23% YoY

๐Ÿ”น Non-GAAP Gross Profit Margin: 57.5% (Est. 56.6%) ๐ŸŸข


FY'24 Guidance:

๐Ÿ”น Full-year Free Cash Flow: More than $12B

๐Ÿ”ธ Q4 Revenue Growth: Expected to align with Q3 performance

๐Ÿ”ธ Currency Headwind: Forecast ~0.5% impact in Q4


Segment Performance:

๐Ÿ”ธ Software Revenue: $6.52B; UP +9.7% YoY

๐Ÿ”น Hybrid Platform & Solutions: UP +10%

๐Ÿ”น Red Hat: UP +14%

๐Ÿ”น Automation: UP +13%

๐Ÿ”น Data & AI: UP +5%

๐Ÿ”น Security: DOWN -1%

๐Ÿ”ธ Transaction Processing Revenue: UP +9%

๐Ÿ”น Consulting Revenue: $5.15B; DOWN -0.5% YoY

๐Ÿ”น Business Transformation: UP +2%

๐Ÿ”น Technology Consulting: DOWN -4%

๐Ÿ”น Application Operations: DOWN -1%

๐Ÿ”ธ Infrastructure Revenue: $3.04B; DOWN -7% YoY

๐Ÿ”น Hybrid Infrastructure: DOWN -9%

๐Ÿ”น IBM Z: DOWN -19%

๐Ÿ”น Distributed Infrastructure: DOWN -3%

๐Ÿ”น Infrastructure Support: DOWN -4%

๐Ÿ”ธ Financing Revenue: $181M; DOWN -2.7% YoY


Cash Flow and Balance Sheet:

๐Ÿ”น Year-to-date Operating Cash Flow: $9.1B; DOWN $0.4B YoY

๐Ÿ”น Free Cash Flow YTD: $6.6B; UP $1.5B YoY

๐Ÿ”น Cash & Marketable Securities: $13.7B; UP $0.3B from 2023

๐Ÿ”ธ Capital Return: Returned $1.5B to shareholders via dividends


AI and Strategic Developments:

๐Ÿ”ธ Generative AI Business: Exceeds $3B, growing $1B quarter-over-quarter

๐Ÿ”ธ Software Contribution: Software now accounts for nearly 45% of total revenue

๐Ÿ”ธ AI Focus: IBM emphasizes cost-efficient, high-performance AI models


Management Commentary:

๐Ÿ”ธ 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."

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