IBM’s AI-Driven Earnings Surge Shifts Focus to Microsoft’s Upcoming Results
IBM's third-quarter earnings outperformed expectations, with revenue climbing 9% year-over-year to $16.3 billion, fueled by robust software and infrastructure growth. The company's AI business reached $9.5 billion as enterprise adoption accelerated, while free cash FLOW projections rose to $14 billion. Despite these gains, cloud revenue growth slowed to 14%, signaling potential headwinds.
Attention now turns to Microsoft's October 29 earnings report, which will test whether Big Tech can maintain its dominance over legacy players like IBM. The results may determine if Microsoft's stock extends its lead or if IBM's turnaround under CEO Arvind Krishna begins closing the gap in enterprise tech.