How does IBM's Q4 2024 earnings compare to forecasts?

IBM's Q4 2024 earnings are expected to align with the previous quarter's performance, showing a modest growth in total revenue but missing analysts' expectations. Here's a detailed comparison:

1. **Revenue Growth**: IBM reported a total revenue of $14.968 billion for Q3 2024, marking a 1% increase from the previous year and 2% when not accounting for currency fluctuations. This growth is primarily driven by strong performance in the software segment, particularly in Red Hat and transaction processing.
2. **Earnings Performance**:
- IBM reported a net loss of $330 million for the quarter, which is a significant decline from the profit of $1.704 billion in the same period last year.
- The operational loss from continuing operations amounted to $317 million, indicating a challenging financial period for the company.
3. **Segmental Performance**:
- The software segment saw a 10% revenue increase, contributing significantly to the overall growth. IBM's strategic focus on hybrid cloud and AI is paying off, with software now comprising nearly 45% of total revenue.
- Consulting revenue remained flat, impacted by economic uncertainty and a pause in discretionary spending.
- Infrastructure revenue declined by 7%, reflecting product cycle dynamics and challenges in the market.
4. **Currency Impact**: Currency fluctuations are expected to be a headwind, with a 0.5 point impact on revenue growth in the fourth quarter.
5. **Financial Metrics**:
- IBM achieved the highest levels of cash generation in the first nine months in many years, indicating strong operational efficiency.
- Free cash flow increased to $2.1 billion, with $1.5 billion returned to shareholders via dividends.

In conclusion, while IBM's software segment performed strongly, the overall revenue growth for the quarter was only 2% at constant currency, indicating mixed performance across segments. The company's financial results for Q4 2024 show a modest growth in total revenue but missed analysts' expectations, resulting in a net loss.