On October 23rd local time, "Blue Giant" IBM announced its financial report, showing that the company's overall revenue in the third quarter increased by 1.5% year-on-year, but the net loss reached 330 million US dollars. The company's post market stock price fell by about 2.5%. So far this year, IBM's stock price has risen by over 40%.
Due to the accelerated development of Red Hat's business, IBM's software revenue has shown outstanding performance. In the third quarter, IBM's software revenue reached 6.52 billion US dollars, a year-on-year increase of about 10%, setting the largest revenue growth in three years, and the software gross profit margin reached 83%. Red Hat's business unit saw a 14% increase in revenue. IBM Finance Director Jim Kavanaugh stated in a conference call with analysts that this is the quarter with the highest number of signings since IBM's acquisition of Red Hat.
However, the revenue growth of IBM's consulting and infrastructure departments has slowed down. The consulting business revenue was 5.15 billion US dollars, lower than expected; The revenue of the infrastructure sector was 3.04 billion US dollars, a decrease of 7%. Kavanaugh stated that customers are waiting for IBM's large-scale mainframe devices to be launched in the first half of next year.
It is worth noting that IBM claims to currently have over $3 billion in generative artificial intelligence business, with a growth of over $1 billion in the second quarter, of which about 80% comes from consulting business and the rest from software business.
IBM Consulting Greater China President Chen Kedian previously told First Financial reporters, "Generative AI is driving the transformation of consulting and customer service models. IBM has developed an AI consulting service platform based on the Watson platform, which has helped IBM consultants save more than 50% of personnel time in app design, development, customer testing projects, and other work