International Business Machines Corporation (IBM) released its Q3 2024 earnings report, showcasing a revenue of $15 billion, marking a slight year-over-year increase of 1.46% but a decline of 5.09% quarter-over-quarter. The earnings call led by CEO Arvind Krishna emphasized robust growth in the software segment, particularly driven by the accelerating performance of Red Hat, which recorded a growth rate of 14%. Despite this success, consulting revenues were flat, attributed to ongoing macroeconomic uncertainties affecting discretionary spending by clients. The company's balanced focus on increasing profitability, highlighted by a 210 basis points expansion in operating gross margin, reflects a strategic shift toward higher-margin software offerings and the positioning for long-term opportunities within artificial intelligence (AI) and hybrid cloud services.