IBM has grown out its software division in the five years since it acquired open-source solution provider Red Hat for $34 billion, executives said Wednesday, during a Q3 2024 earnings call for the three-month period ending Sept. 30. The company reported software revenue of $6.5 billion, up 9.7% year over year, on $15 billion in total revenue.

International Business Machines missed analysts' estimates for third-quarter revenue on Wednesday, hurt by weakness in its consulting segment as businesses cut back on discretionary expenses, coupled with declines in the infrastructure business.