IBM raises lower end of annual software revenue growth forecast after Q3 beat
IBM•IBM raised the lower end of its annual software revenue growth forecast to about 7% from 6%, keeping the upper end at 8%, after Q3 revenue rose 5% to $17.10 billion and adjusted EPS reached $2.95. The company also raised its full-year free cash flow outlook to an increase of more than $1 billion year over year.
1. Quarterly results
IBM reported Q3 revenue of $17.10 billion, up 5% and above the $16.82 billion analyst consensus. Adjusted EPS was $2.95, beating the $2.86 consensus.
2. Outlook and segments
IBM lifted the lower end of its annual software revenue growth forecast to about 7% from 6%, while keeping the range’s upper end at 8%. It now expects full-year free cash flow to increase by more than $1 billion year over year. Software revenue rose 8%, while infrastructure revenue increased 4%; a 31% gain in Distributed Infrastructure offset a 20% decline in IBM Z.
