IBM Stock Inches Higher On Q3 Earnings: The Details

International Business Machines Corp IBM reported third-quarter financial results after the bell. Here's a look at the key highlights from the quarter.

Q3 Earnings: IBM said third-quarter revenue increased 4.6% year-over-year to $14.8 billion, versus the consensus estimate of $14.728 billion, according to Benzinga Pro. 

The company reported quarterly adjusted earnings of $2.20 per share versus estimates of $2.13 per share.

Software revenue was up 8% year-over-year and consulting revenue was up 6%, while infrastructure revenue decreased 2%. 

Cash flow from operations totaled $3.1 billion in the third quarter. Free cash flow came in at $1.7 billion. IBM ended the quarter with $11 billion in cash and marketable securities.

"Clients are increasingly adopting our watsonx AI and data platform along with our hybrid cloud solutions to unlock productivity and operational efficiency," said Arvind Krishna, chairman and CEO of IBM.

"This is helping drive solid growth in our software and consulting businesses. As a result, we remain confident in our revenue and free cash flow growth expectations for the full year." 

Outlook: IBM continues to expect constant currency revenue growth of 3% to 5% for the full-year 2023. The company anticipates a full-year free cash flow of approximately $10.5 billion.

Management will hold a conference call to discuss these results at 5 p.m. ET.

Don't Miss This: Amazon Q3 Earnings Preview: What Analysts Are Saying, NFL, NBA, AI, Other Key Items To Watch

IBM Price Action: IBM shares were up 1.90% after hours at $139.69 at the time of publication, according to Benzinga Pro.

Photo: courtesy of IBM.