Generative AI OpportunityThe introduction of generative AI represents a significant business opportunity for IBM, especially impacting its consulting and software segments.
Software GrowthIBM raised its expectations of Software revenue growth in FY24F to high-single digits due to early traction in GenAI and strength in the recurring revenue base, which is above consensus expectations.
Strategic PartnershipsIBM entered into a partnership with Palo Alto and gained some well-renowned customers during the quarter and recorded a book of business in generative AI inception >USD2bn.