IBM reports software revenue in line with estimates

Core Insights - The company has raised its revenue guidance by more than 5% and reported a free cash flow increase to $14 billion from $13.5 billion [1] - The performance of different business segments is mixed, with software, which constitutes nearly 50% of the business, meeting street expectations after a previous miss [1] - IBM's Red Hat business saw a decline in growth from 14% to 12% quarter-on-quarter [1] - The AI segment of the business has shown significant growth, with revenue jumping to $9.5 billion, a 50% increase quarter-on-quarter [2] - Despite the recent increase in IBM's share price, there remains a consensus of buy ratings across Wall Street [2]