IBM's quarter beat: EPS 2.95 and revenue 17.1 billion topped estimates, free cash flow 3.0 billion beat 2.63 billion, and slipped mainframe deals closed. Guidance for 4-5% constant-currency revenue growth was reaffirmed, making the outlook more optimistic, but IBM must keep its onboarding timeline.

but I want to jump to IBM here because we do have quite a few earnings to get through. Also seeing a move to the upside here of 6 and a half% right now. Uh that's because their EPS came in better than expected at 295.

The expectation was for $2.86. It's up 11.32% year-over-year.

Revenue is up almost 5% to 17.1 billion. and that also topped the expectations for 16.83. Their software revenue grew more than 8% to $7.8 billion. That also beat the expectations.

Infrastructure rose 4.2% to 3.71 billion. That was above the $3.57 billion estimate.

Consulting also came in at 5.34 billion. That was slightly below the $5.39 billion estimate, but free cash flow a standout in this report as well. 3.0 03 billion. That's well above the $2.63 billion estimate.

And a lot of questions investors wanting to see that earnings growth translating into cash generation here. And that beat significant for IBM.

About twothirds of the mainframe and association software deals that slipped in the second quarter closed during the third quarter. The company is saying IBM also saying it's optimistic about most of the remainder. Uh that's coming from CFO Jim Kavanaaugh.

They also reaffirmed its fullear constant currency revenue growth forecast of 4 to 5% in line with the consensus number there. But we're seeing a a nice pop to the upside here of 4%.

You know, KG, what's uh what's standing out to you most here for IBM?

>> Well, you kind of highlighted it. the the delayed deals are now kind of being reflected in this quarter. But he also highlighted that 75% of the net new deals uh of that high is still something that they are looking forward to uh in the coming quarters as well.

So it's not only the deferred sales, but they were able to kind of backfill some of that order flow as well for this current quarter. And that's where you get a little bit more optimistic.

the big key for them is going to be able to stick to their timeline when it comes to onboarding these customers and these clients and and getting these deals across the finish line here.

But a pretty good and strong report. I mean, if you're looking at the the comp's annual uh software revenue growth of

Yeah, some clarity and some visibility helping contribute to this 5.2% move to the upside for IBM.