Will Healthy Consulting Revenue Growth Benefit IBM's Q4 Earnings?

Core Insights - IBM is expected to report higher revenues in its Consulting segment due to increased demand for technology consulting and business transformation services [1] Group 1: Consulting Segment Performance - The Consulting segment includes Strategy and Technology and Intelligent Operations, providing consulting and application management services that leverage industry and technology expertise [2] - IBM's partnership with Microsoft has been extended, enhancing its consulting capabilities through the integration of Microsoft's Copilot with IBM Consulting Advantage [3] - The integration of AI tools has resulted in significant efficiency gains, saving IBM 250,000 hours annually, which translates to $35 million in value [4] Group 2: Revenue Expectations - The Zacks Consensus Estimate for Consulting revenues is projected at $5.43 billion, an increase from $5.17 billion in the same quarter last year [5] - Total revenue for IBM is estimated at $19.22 billion, up from $17.55 billion in the prior-year quarter, with earnings expected to grow to $4.33 per share from $3.92 [5] Group 3: Earnings Predictions - Current analysis does not predict an earnings beat for IBM in the fourth quarter, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [6]