IBMs third-quarter results beat estimates on resilient software demand
Summary
IBM, like the rest of the IT services industry, is operating in a tough macroeconomic environment that has triggered a further tightening of client budgets. While peers like Accenture flagged deepening weakness in consulting deals, IBMs finance chief James Kavanaugh told Reuters the company had grabbed market share in that segment. Clients continued to cut back on discretionary projects, a trend that has remained unchanged since the last few quarters, he said. Kavanaugh also said IBM had "low hundreds of millions of dollars" under generative artificial intelligence (AI) sales or bookings in the third quarter, with clients including accounting firm Ernst & Young and Truist Bank. "The company has done a fantastic job in adapting to the markets needs, both in the AI and cloud segments," Investing.com analyst Thomas Monteiro said.