IBM Reports Strong Growth from AI and Cloud Shift

The AI and hybrid-cloud approach of IBM creates outcomes of record revenue growth and growing margins, which are the indicators of high performance rates.

IBM's strategic change into AI and hybrid cloud utilization is paying off, and the company's achievement in the third quarter exceeded market expectations. The tech company revenue increased by 9 percent, which was its best growth over the years, with profit margins increasing by two points as a result of the transformational strategy.

The automation software of IBM increased by 22 percent, and the sale of mainframes increased by 59 percent after launching their z17 model. Its AI business is also rolling and its backlog in contracts is at 9.5 billion and in the new AI consulting deals, it is 1.5 billion in this quarter only.

Its collaboration with Anthropic has also boosted the productivity of AI used by the company by providing an increase of 45 percent performance by the first users. In the meantime, the fact that IBM cooperates with AMD in quantum computing demonstrates its desire to become the pioneer in the next technological revolution.

After increasing 24 percent this year and having a clear roadmap to develop a fault-tolerant quantum computer in 2029, IBM's growth projection is projected to stay on track.