Summary by Futu AI
IBM reported Q3 2024 revenue of $15.0 billion, up 1.5% year-over-year (2% in constant currency), driven by 9.7% growth in Software revenue. However, the company recorded a net loss of $330 million due to a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion after tax) related to transferring $6 billion in pension obligations to Prudential Insurance.Operating performance showed continued strength with gross margin expanding 1.9 points to 56.3% on improved portfolio mix and productivity. Software growth was led by Red Hat (+13.7%), Automation (+13.2%), and Data & AI, while Consulting revenue declined 0.5% to $5.2 billion amid macro uncertainty. Infrastructure revenue fell 7.0% to $3.0 billion on product cycle dynamics.The company generated $2.9 billion in operating cash flow and $2.1 billion in free cash flow during the quarter, returning $1.5 billion to shareholders through dividends. Management highlighted strong demand for AI solutions across the portfolio and reaffirmed the company's strategic focus on hybrid cloud and AI innovation while maintaining solid cash generation and shareholder returns.
