Red Hat’s jump in revenues helps deliver Street beating quarter for Big Blue

RESEARCH TRIANGLE PARK – With revenues from Raleigh-based Red Hat climbing 9% and other software segments such as artificial intelligence also boosting revenues, IBM on Wednesday delivered Street-beating financials for the quarter ending Sept. 30.

Here’s the breakdown on software growth:

Revenues of $6.3 billion, up 7.8 percent, up 6.3 percent at constant currency
Hybrid Platform & Solutions up 8 percent, up 7 percent at constant currency
Red Hat up 9 percent, up 8 percent at constant currency
Automation up 14 percent, up 13 percent at constant currency
Data & AI up 6 percent
Transaction Processing up 7 percent, up 5 percent at constant currency
However, security down 2 percent, down 3 percent at constant currency

“Technology remains a critical source of competitive differentiation and progress for organizations around the world,” said Arvind Krishna, IBM chairman and chief executive officer, in a statement. “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. As a result, we remain confident in our revenue and free cash flow growth expectations for the full year.”

In a conference call, Krishna noted that generative AI delivered “low hundreds of millions of dollars,” CNBC noted.

IBM delivered $2.20 in earnings (7 cents better than expected) and revenues of $14.75 billion (slightly better than the expected $14.73 billion), CNBC added.

For the full financial report, read here online.