IBM Reports Strong Third-Quarter Earnings for 2023

IBM, a global leader in technology and consulting services, has announced its financial results for the third quarter of 2023, showcasing impressive growth in key segments.
Watson X from IBM

Third-Quarter Financial Highlights:

Total Revenue: $14.8 billion, reflecting a 4.6 percent increase

Software Revenue: Up 8 percent

Consulting Revenue: Up 6 percent

Infrastructure Revenue: Down 2 percent

IBM’s Chairman and Chief Executive Officer, Arvind Krishna, commented on the results, stating, “Clients are increasingly adopting our WatsonX AI and data platform along with our hybrid cloud solutions to unlock productivity and operational efficiency. This is helping drive solid growth in our software and consulting businesses.”

Segment Results for the Third Quarter:


Revenues of $6.3 billion, up 7.8 percent

Hybrid Platform & Solutions: Up 8 percent

Red Hat: Up 9 percent

Automation: Up 14 percent

Data & AI: Up 6 percent

Security: Down 2 percent

Transaction Processing: Up 7 percent


Revenues of $5.0 billion, up 5.6 percent

Business Transformation: Up 6 percent

Technology Consulting: Up 2 percent

Application Operations: Up 7 percent


Revenues of $3.3 billion, down 2.4 percent

Hybrid Infrastructure: Up 1 percent

IBM zSystems: Up 9 percent

Distributed Infrastructure: Down 4 percent

Infrastructure Support: Down 6 percent


Revenues of $0.2 billion, up 6.9 percent

IBM’s performance in the third quarter reflects substantial growth in software and consulting, with software revenues up 8 percent and consulting revenues up 6 percent. The Hybrid Platform & Solutions segment, particularly the performance of Red Hat and Automation, contributed significantly to this growth.

In the infrastructure segment, while there was a decline in revenues, IBM’s zSystems reported a notable increase of 9 percent, which partially offset the overall decrease.

IBM continues to adapt to the evolving technology landscape, offering AI and hybrid cloud solutions that cater to the changing needs of its clients. These results underscore the company’s commitment to innovation and its ability to drive growth in key areas of its business.

IBM’s strong performance in the third quarter positions it as a formidable player in the technology and consulting industry, with a focus on AI, data, and hybrid cloud solutions to meet the demands of the modern business landscape.