After the closing bell on Oct. 23, International Business Machines (IBM) reported mixed third-quarter 2024 results. It beat estimates for earnings but lagged the same for revenues. IBM shares slipped as much as 8% in aftermarket hours following the results and tumbled more than 4% in pre-market trade today at the time of writing. ETFs with the highest allocation to this tech giant have been in focus. These funds are First Trust NASDAQ Technology Dividend Index Fund (TDIV) , FT Vest Technology Dividend Targe ...

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in IBM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking ...

U.S. stock futures were mixed this morning, with the Nasdaq futures gaining around 150 points on Thursday. Shares of International Business Machines Corporation IBM fell sharply in today's pre-market trading session following a third-quarter revenue miss. IBM reported third-quarter revenue of $14.968 billion, missing the consensus estimate of $15.07 billion, according to Benzinga Pro. IBM shares tumbled 5% to $221.28 in pre-market trading. Here are some big stocks recording losses in today's pre-market trad ...

International Business Machines Corporation (IBM) reported relatively healthy third-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate but the top line missing the same.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company witnessed healthy demand trends for hybrid cloud and artificial intelligence (AI) solutions with a client-focused portfolio and broad-based growth. It remains on track to reach its targets for 2024. However, despite solid AI trac ...

KEY TAKEAWAYSIBM shares are dropping 5% in premarket trading Thursday, weighing on Dow Jones Industrial Average futures, after its quarterly revenue fell short of Wall Street estimates.The company reported third-quarter revenue of $14.97 billion, lower than the $15.07 billion consensus estimate of analysts polled by Visible Alpha, as infrastructure revenue fell 7% and consulting revenue remained flat.IBM CEO Arvind Krishna said the group expects fourth-quarter revenue growth, in constant-currency terms, to ...

WASHINGTON, Oct. 24, 2024 /PRNewswire/ -- IBM (NYSE: IBM) today announced that its Envizi environmental, social, and governance (ESG) Suite received Federal Risk and Authorization Management Program (FedRAMP) authorization. Designed to create a single, trusted system of record for all ESG data, the IBM Envizi ESG Suite helps organizations automate the capture and management of ESG data for enhanced analysis, reporting and opportunity identification. IBM Envizi is available to federal agencies on the FedRAMP ...

In my previous coverage published in April 2024, I highlighted IBM’s (NYSE: IBM ) growth in software and consulting business, anticipating solid organic revenue growth in the near future. I anticipate IBM will continue infusing its AI capabilities across its business lines, particularlyAnalyst’s Disclosure: I/we have a beneficial long position in the shares of IBM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving ...

3Q 2024 Earnings October 23, 2024 ibm.com/investor Forward-looking statements and non-GAAP information Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on the company's current assumptions regarding future business and financial performance. Those statements by their nature address matters that are uncertain to different degrees. Those statements involve a number of factors tha ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $15 billion, with adjusted EBITDA of $3.8 billion, operating pretax income of $2.5 billion, and operating diluted earnings per share of $2.30 [14] - Free cash flow for the first nine months of 2024 was $6.6 billion, up $1.5 billion year-over-year [14][17] - Revenue growth for the quarter was 2% at constant currency, with software growth accelerating to 10% [14] - Consulting revenue was flat, while infrastructure revenue declined by 7% [14][15] - Operating pretax margin expanded by 100 basis points, driving 8% operating pretax profit growth [14] Business Line Performance - Software revenue growth accelerated to 10%, driven by Red Hat (14% growth), automation, data and AI, and transaction processing [14][18] - Consulting revenue was flat, impacted by macroeconomic uncertainty and client reprioritization of spending [14][22] - Infrastructure revenue declined by 7%, with hybrid infrastructure down 9% and infrastructure support down 3% [25] - Red Hat's ARR for hybrid platform and solutions reached $14.9 billion, up 11% year-over-year [7][20] Market Performance - Red Hat's global footprint expanded, with OpenShift ARR growing from $100 million to $1.3 billion since acquisition [7] - The company's generative AI book of business exceeded $3 billion, with $1 billion added quarter-over-quarter [8] - Strong collaborations were announced with NatWest, Telefonica, Samsung SDS, and Toyota Systems [11] Strategic Direction and Industry Competition - The company is repositioning its portfolio towards higher growth, higher margin businesses, focusing on hybrid cloud and AI [4] - Red Hat's acquisition has been a key driver of growth, with revenue doubling to $6.5 billion since the acquisition [7] - The company is investing in emerging technologies, including quantum computing, with the opening of Europe's first IBM Quantum Data Center [12] Management Commentary on Operating Environment and Future Outlook - The macroeconomic environment remains uncertain, with geopolitical issues, elections, and inflation impacting discretionary spending [5] - The company expects low double-digit revenue growth for software in Q4, led by Red Hat and transaction processing [27] - Consulting revenue is expected to remain flat in Q4, with infrastructure revenue impacted by product cycle dynamics [28] - The company raised its operating pretax margin expansion expectation to 1 point for the full year [29] Other Important Information - The company closed the Palo Alto QRadar transaction, generating a pretax gain of $350 million [16] - Year-to-date, the company returned $4.6 billion to shareholders in the form of dividends [17] - The company expects to achieve $3.5 billion in annual run rate savings by the end of 2024 [29] Q&A Session Summary Question: How does the upward inflection in growth for 2025 pan out for Software and Consulting? [33] - Software growth is expected to be driven by Red Hat, generative AI products, and automation, with potential for 3 points of growth [34] - Consulting growth is expected to improve in the second half of 2025, driven by generative AI and strategic partnerships [36] Question: Why should 2025 growth not be viewed as a one-off? [37] - The company has rebuilt its portfolio to be sustainable, with 80% of software revenue on a recurring basis and strong organic growth [40] - Consulting signings are expected to improve, with generative AI projects driving future growth [42] Question: How is the Consulting AI book of business impacting revenue? [44] - The Consulting AI book of business is growing, with $1 billion added quarter-over-quarter, but revenue yield is lower due to longer durations [46] - The company expects the AI pipeline to turn into revenue, driving growth in 2025 [48] Question: What is the sustainability of the 30% software margin? [59] - The 30% software margin is driven by strong revenue growth, productivity initiatives, and strategic focus on hybrid cloud and AI [61] Question: When will Consulting AI projects turn from cannibalizing traditional business to becoming incremental? [62] - Consulting AI projects are expected to start contributing more significantly in the second half of 2025, as the company wraps up short-term discretionary spending pullbacks [65] Question: What is the customer feedback on the Granite models? [66] - Customers appreciate the cost efficiency and practicality of the Granite models, which are 90% more cost-efficient and can be trained in weeks [66][68]