IBM beats earnings estimates as its $7.8 billion software empire helps revive growth

IBM reported third-quarter results on Wednesday, October 21, that exceeded Wall Street earnings expectations, with net income of $2.19 billion, or $2.30 per share, up from $1.74 billion, or $1.84 per share a year earlier. The company’s software revenue rose 8% to beat analysts’ $7.66 billion estimate, while consulting revenue was $5.34 billion, below the $5.37 billion expected. Adjusted gross margin was 58.5%, compared with the 59.1% estimate cited, and IBM shares slipped after the close. CFO Jim Kavanaugh said AI-related work accounted for about 30% of consulting revenue.