IBM beats on top and bottom lines as CEO Krishna touts 'Super Intelligence' traction
CEO Arvind Krishna indicated that IBM is helping clients in artificial intelligence.
TL;DR
- IBM's Q3 adjusted earnings of $2.95 surpassed the $2.86 expected, and revenue of $17.10 billion exceeded the $16.82 billion consensus.
- Software revenue grew 8% to $7.80 billion, while consulting revenue was flat at $5.34 billion, with AI representing a significant portion of consulting revenue and backlog.
- The company increased its full-year free cash flow guidance by over $1 billion and maintained its 2026 revenue growth outlook of 4%-5% in constant currency.
- IBM agreed to acquire HRL Laboratories, formerly Hughes Aircraft's research division.