Copyright Benzinga
International Business Machines Corp (NYSE:IBM) reported financial results for the third quarter after the market close on Wednesday. Here’s a rundown of the report. IBM is building momentum. Find out why here. Q3 Highlights: IBM reported third-quarter revenue of $16.33 billion, beating the consensus estimate of $16.09 billion, according to Benzinga Pro. The company reported third-quarter adjusted earnings of $2.65 per share, beating analyst estimates of $2.45 per share. Total revenue was up 9% on a year-over-year basis. Here’s a breakdown of revenue by category. Software: up 10% Consulting: up 3% Infrastructure: up 17% Cash flow from operations totaled $3.1 billion in the quarter and free cash flow came in at $2.4 billion. IBM ended the period with $14.9 billion in cash, restricted cash and marketable securities. “Clients globally continue to leverage our technology and domain expertise to drive productivity in their operations and deliver real business value with AI. Our AI book of business now stands at more than $9.5 billion,” said Arvind Krishna, chairman, president and CEO of IBM. IBM returned $1.6 billion to shareholders via dividends in the third quarter. The company’s board approved a quarterly cash dividend of $1.68 per share, payable on Dec. 10 to shareholders of record as of Nov. 10. What’s Next: IBM now expects constant currency revenue growth of “more than” 5% for full-year 2025, up from prior guidance of “at least” 5%. The company also guided for full-year free cash flow of approximately $14 billion, up from prior guidance of more than $13.5 billion. IBM executives will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET. IBM Price Action: IBM shares were down 5.12% in after-hours, trading at $273.93 at the time of publication on Wednesday, according to Benzinga Pro. Read Next: Tech Stocks Drop, Netflix Sinks 10% On Worst Day Since 2022: What’s Moving Markets Wednesday? Image: Shutterstock.com
