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To: Johnny Canuck who wrote (56785)	7/20/2023 12:49:22 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67677

IBM Shares Climb on Gross Margin Beat, Rising Demand for AI Products By Bill McColl Published July 20, 2023 David Ramos / Staff / Getty Images Key Takeaways IBM beat quarterly profit forecasts and boosted its adjusted gross margin. The company said it benefited from improving product mix and productivity initiatives. CEO Arvind Krishna said customers are using IBM's artificial intelligence products. IBM ( IBM) shares gained after the technology giant beat earnings estimates as productivity improved following its recent layoffs and emphasized client demand for its artificial intelligence (AI) products. IBM posted fiscal 2023 second quarter profit of $2.18 per share. Revenue fell 0.4% to $15.48 billion, which was short of forecasts. The adjusted gross margin was 55.9%, better than anticipated.1 Software revenue rose 7.2% to $6.6 billion, and consulting revenue gained 4.3% to $5 billion. Sales at the Infrastructure unit, which includes IBM’s mainframe computers, was $3.6 billion, a drop of 14.6%. CFO James Kavanaugh noted the gross margin gain was “driven by our improving portfolio mix and productivity initiatives.” The company cut its workforce by 3,900 in January. CEO Arvind Krishna focused on AI, indicating that customers are using the technology to “transform their operations.” He said IBM was continuing to respond to “the needs of our clients who seek trusted, enterprise AI solutions" and that he was particularly excited about the response to IBM's recently-launched “WatsonX” AI platform. Shares of IBM were up about 3% in early trading on Thursday, putting them about 1% below breakeven for 2023. YCharts