IBM Beats Q3 Expectations with Growth in Software Sales and AI Bookings

Despite macroeconomic challenges and tightening client budgets, IBM reports $14.8 billion revenue in Q3 backed by 8% rise in software sales and significant AI bookings; Apptio acquisition and strong market adaptation amid AI and cloud demand contribute to growth.

• IBM reported a third-quarter revenue of $14.8 billion, benefitting from an 8 percent increase in software sales, primarily driven by strong software demand and significant AI bookings.
• While dealing with macroeconomic challenges and tightened client budgets, IBM reported it managed to secure market share in consulting deals, even as competitors like Accenture experienced a drop.
• The company has seen a surge of interest in its AI and cloud services, allowing it to adapt successfully to market demands. AI bookings in the third quarter amounted to 'low hundreds of millions of dollars', with key clients including Ernst & Young and Truist Bank.
• The company was helped by its acquisition of IT budgeting software maker Apptio. The added portfolio has contributed to the 8 percent rise in the software segment.
• IBM remains optimistic about its financial performance, maintaining its annual target for revenue growth and free-cash-flow generation, despite a strong dollar impacting quarterly revenue by about $250 million more than expected.

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