IBM’s third quarter 2024 performance report reveals a total revenue of $14.968 billion, marking a 1% increase from the same period last year. Despite this growth, a net loss of $330 million was incurred due to special expenses recorded for a one-time transfer of pension liabilities to Prudential.
The software business segment saw a significant uptick, with revenues soaring by 9.7% to $6.524 billion. Particularly, the Hybrid Platform & Solutions subgroup experienced a 10% increase fueled by the success of Red Hat and Automation. Conversely, the consulting business unit witnessed a slight decrease of 0.5% in revenue, amounting to $5.152 billion. The infrastructure services division reported a revenue decline of 4%, totaling $3.042 billion.
IBM’s CEO, Arvind Krishna, attributed the robust growth in the quarter to the software segment, emphasizing the continued demand for AI solutions from customers. The company’s offerings, known for their reliability and cost-efficiency, align well with market needs. Notably, revenue from the Generative AI division has now reached $3 billion.
Source: IBM and CNBC
TLDR: IBM’s Q3 2024 report shows a 1% revenue increase to $14.968 billion, with software business driving growth, while net loss was due to one-time expenses.CEO Krishna highlights strong demand for AI solutions, leading to revenue growth in the Generative AI segment.
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