Tesla Delivers Margin Strength, IBM’s AI Push Powers Profit Growth
International Business Machines (IBM) also beat earnings expectations, reporting $2.30 per share in adjusted earnings, compared to the anticipated $2.23. The company’s performance was driven by its software segment, which saw nearly 10% growth, reaching $6.52 billion in revenue. This marks the largest jump in three years for the division, as companies continue to invest in cloud infrastructure and artificial intelligence (AI) technology, including IBM’s Watsonx platform.
However, IBM’s overall revenue of $14.97 billion fell short of the expected $15.07 billion. Weakness in its consulting and infrastructure segments, both of which showed little or no growth, weighed on the company’s total sales. Consulting revenue declined by 0.5%, as many clients delayed shorter-term projects, opting for larger AI-driven initiatives that will take time to materialize in IBM’s results.
The company’s AI Book of Business has grown significantly, up $1 billion from the previous quarter, reflecting long-term client interest in AI solutions. However, IBM faces near-term challenges from economic uncertainties such as rising interest rates and inflation, which may slow investment.
Other Notable Earnings: T-Mobile and Mattel
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