IBM beats on earnings and revenue

IBM reported adjusted earnings of two dollars ninety five cents per share against two dollars eighty six cents expected. Revenue came to seventeen point one billion dollars versus sixteen point eighty two billion dollars forecast.

CEO Krishna highlights Super Intelligence deployment

IBM CEO Arvind Krishna said clients are deploying Super Intelligence to transform entire operating models rather than addressing narrow problems. Revenue grew about five percent year on year.

“Our clients are now deploying 'Super Intelligence' in ways that transform entire operating models, instead of simply addressing narrow or novel problems.”

Software and consulting revenue breakdown

Software revenue reached seven point eight billion dollars, up eight percent and beating the seven point sixty six billion dollars consensus.

AI represents growing share of consulting work

Finance chief Jim Kavanaugh said AI is increasingly embedded in broader client transformations, representing about thirty percent of consulting revenue in the quarter and thirty five percent of backlog.

“AI is increasingly embedded in broader transformations our clients are undertaking, representing about 30% of our consulting revenue in the quarter and 35% of our backlog.”

IBM raises full-year free cash flow guidance

IBM called for full-year free cash flow to increase by more than one billion dollars, up from the approximately one billion dollar forecast in July.