For the third quarter ended September 30, 2024, International Business Machines Corporation (IBM) reported total revenue of $14,968 million, reflecting a 1.5% increase from $14,752 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $45,199 million, up from $44,479 million year-over-year. The gross profit for the third quarter was $8,420 million, compared to $8,023 million in Q3 2023, while for the nine months, gross profit increased to $25,112 million from $24,033 million.
Despite the revenue growth, IBM reported a net loss of $(330) million for Q3 2024, a significant decline from net income of $1,704 million in Q3 2023. For the nine months, net income was $3,109 million, down from $4,214 million in the prior year. The diluted loss per share from continuing operations was $(0.34), compared to earnings of $1.86 in Q3 2023. The decline in profitability was largely attributed to a one-time, non-cash pension settlement charge of $2.7 billion, which impacted earnings significantly.
The company’s selling, general, and administrative (SG&A) expenses rose to $4,911 million in Q3 2024, up from $4,458 million in the same quarter of 2023, driven by higher workforce rebalancing charges and increased spending related to acquired businesses. Research, development, and engineering (RD&E) expenses also increased by 11.3% in Q3 2024, reflecting investments in AI and hybrid cloud technologies.
IBM's strategic developments included the completion of several acquisitions, notably StreamSets and webMethods for approximately $2.3 billion, enhancing its capabilities in integration and data management. The company also announced plans to acquire HashiCorp for about $6.4 billion, expected to close by the end of 2024. Additionally, IBM divested The Weather Company assets for $1.1 billion, recognizing a pre-tax gain of $241 million.
As of September 30, 2024, IBM's total assets were $134,339 million, slightly down from $135,241 million at the end of 2023. Total liabilities decreased to $109,809 million from $112,628 million, while total equity increased to $24,530 million from $22,613 million, driven by year-to-date net income and common stock issuances.
Cash generated from operating activities for the first nine months of 2024 was $9,115 million, a decrease from $9,468 million in the same period of 2023. Free cash flow increased to $6.6 billion, up from $5.1 billion year-over-year, indicating strong cash generation despite the challenges faced.
About INTERNATIONAL BUSINESS MACHINES CORP
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