Buoyed by the rise of artificial intelligence and sustained demand for its software and mainframes, IBM posted better-than-expected quarterly results. The group posted revenue of $16.33bn, above the $16.09bn expected, with adjusted EPS of $2.65, again above the $2.45 anticipated by analysts. This performance reflects the strong performance of its software and consulting businesses, supported by AI-focused projects.
The software segment, up 10% to $7.21bn, is driving growth, benefiting from corporate investment in the modernization of their digital infrastructures. Infrastructure also grew 17% to $3.56bn, boosted by the success of IBM's new mainframe, designed for artificial intelligence and highly popular in the financial sector. According to CFO Jim Kavanaugh, these machines offer enhanced security and data sovereignty, two decisive criteria for customers.
The AI-related order book reached $9.5bn, up from $7.5bn in the previous quarter, while consulting grew 3% to $5.32bn. Despite a nearly 5% decline in its share price after the close, IBM is revising its outlook upward and now forecasts annual growth of more than 5% at constant exchange rates, compared to a previous estimate of at least 5%.
