IBM reported mixed results for the third quarter of 2024, with revenue falling short of estimates but earnings exceeding expectations. The company posted a revenue of $14.97 billion, missing the forecasted $15.05 billion, while operating earnings per share (EPS) came in at $2.30, surpassing the estimated $2.22. Despite a 1.5% year-over-year increase in revenue and a 23% rise in free cash flow, IBM's consulting and infrastructure segments underperformed due to reduced enterprise spending, leading to a 6.17% drop in stock price. The company also reported negative net income for the quarter. However, IBM's AI sector showed promise with $3 billion in generative AI bookings and a 9.5% growth in its software segment, including a 14% increase in Red Hat revenue. CEO Arvind Krishna highlighted the company's strong traction in enterprise AI, positioning IBM as an early leader in the field. The consulting sector's underperformance was partly due to customers reprioritizing tech spend towards AI proof of concepts.