What caused IBM's Q3 2023 operating profit rebound?

IBM's Q3 2023 operating profit rebound can be attributed to several key factors:

1. **Strategic Initiatives**: IBM's continued investment in key growth areas such as mobility, security, and cloud has resulted in a differentiated set of capabilities that complement its clients' systems of record. This strategic focus likely contributed to improved operational efficiency and profitability.
2. **Growth in Software and Consulting**: IBM's software segment, including hybrid cloud platforms and business automation software, has seen significant growth. The increase in software revenue, particularly from IBM's SaaS offerings, which grew by nearly 40% during the quarter, suggests a strong performance in this area. Consulting services also reported a year-over-year increase in revenue.
3. **Cloud Revenue Expansion**: IBM's cloud revenue experienced a substantial increase, with cloud revenue reaching $4.1 billion, a 20% year-over-year growth. This expansion likely contributed to the overall operating profit rebound, as cloud services are a key area of focus for IBM's growth strategy.
4. **Increased Strategic Imperatives Revenue**: The revenue from IBM's strategic imperatives, which includes cloud and cognitive solutions, increased by 11% year-over-year. This growth in high-margin business likely had a positive impact on operating profit margins.
5. **Improved Gross and Net Operating Margins**: IBM reported an expansion in gross and net operating margins, which suggests that the company was able to increase profitability on its operations. This improvement would directly contribute to the operating profit rebound.

In conclusion, IBM's Q3 2023 operating profit rebound is a result of a combination of strategic initiatives, growth in key business segments, and improved operational efficiencies. These factors collectively contributed to the company's financial performance during the quarter.