Overview

* IBM ( IBM ) Q3 revenue of $16.3 bln beats analyst expectations per LSEG data

* Company raises full-year outlook for revenue growth and free cash flow

* IBM's ( IBM ) AI book of business reaches $9.5 bln, reflecting focus on AI solutions

Outlook

* IBM ( IBM ) raises full-year revenue growth outlook to over 5% at constant currency

* Company expects full-year free cash flow of about $14 bln

* IBM ( IBM ) anticipates currency tailwind of 1.5 points to annual growth

Result Drivers

* AI BUSINESS - IBM's ( IBM ) AI book of business reached $9.5 bln, contributing significantly to revenue growth, per CEO Arvind Krishna

* HYBRID CLOUD - Hybrid Cloud revenue increased 14%, driven by demand for Red Hat solutions

* INFRASTRUCTURE SALES - Infrastructure revenue rose 17%, with IBM Z sales up 61%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $16.30 $16.08

Revenue bln bln (13

Analysts

)

Q3 EPS $1.84

Q3 Gross 57.30%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for International Business Machines Corp ( IBM ) is $292.09, about 3.4% above its October 21 closing price of $282.05

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)