IBM SOFTWARE GROWTH OUTPACES FLAT CONSULTING BUSINESS

IBM reported $17.1 billion in third-quarter revenue, up 5% year over year and ahead of Wall Street's $16.8 billion estimate. The growth was lopsided: Software revenue rose 8% to $7.8 billion as enterprises expanded AI deployments, while Consulting revenue stayed flat at $5.3 billion. CEO Arvind Krishna said clients are now using the company's AI tools to reshape entire operating models rather than solve narrow problems. $IBM gained in after-hours trading on the report.