IBM shares fell 3% in after-hours trading after missing Wall Street's third-quarter revenue expectations. Adjusted earnings per share exceeded expectations. IBM's revenue grew 1.5% year-over-year, but it posted a net loss due to a pension settlement charge. Software revenue grew 10% in the third quarter, surpassing analyst expectations. Its generative AI business grew by over $1 billion in the second quarter, with 80% of the revenue in consulting and the rest in software. The company reiterated its free cash flow target of more than $12 billion for 2024.
