IBM's operating profit decline in Q3 2024 can be attributed to Increased Expenses and Soft Revenue Growth in Consulting:
- Increased Expenses: Total expenses increased to $6.73 billion from $6.5 billion due to higher R&D costs1. This increase in expenses negatively impacted the operating profit.
- Soft Revenue Growth in Consulting: While revenue growth was strong in software and infrastructure segments, the consulting segment faced challenges with a 2% revenue growth2. This soft growth in consulting, coupled with increased expenses, contributed to the operating profit decline.
In summary, the decline in operating profit was primarily driven by increased expenses and soft revenue growth in the consulting segment.
3/30/2025 05:16am
