Investing.com -- International Business Machines (NYSE:IBM) shares were rising after beating expectations on profit for the third quarter and reaffirming its outlook.
The tech company reported adjusted earnings per share of $2.20 on revenue of $14.75 billion. Analysts expected adjusted earnings of $2.12 a share on revenue of $14.73 billion.
Shares rose 1.4% in pre-market Thursday trading. They are down 2.7% so far this year.
Software revenue, which includes its artificial intelligence platform, rose 8%, consulting revenue rose 6%, and infrastructure revenue fell 2%.
IBM reaffirmed its outlook for revenue growth of 3% to 5% on a constant currency basis. It also reaffirmed its 2023 guidance for free cash flow at about $10.5B.
The company also stated that it expects revenue to come in at the low end of the 3-5% constant currency revenue range, in line with expectations.
Bernstein analysts said the results were "not perfect, but just fine."
"The company upheld its guidance, and while RHT is slowing, its consulting business continues to defy skeptics and the company is growing revenues ~3% this year in a non-mainframe year, which is pretty respectable. While FCF of $10.5B for the full year is a not a slam dunk, IBM will likely be close, and by January it won't matter - all focus will be on 2024," the analysts said.
Additional reporting by Senad Karaahmetovic