IBM continues to expect operating (non-GAAP) diluted earnings per share of at least $13.80 and GAAP diluted earnings per share of at least $11.95.
Operating (non-GAAP) diluted earnings per share exclude $1.85 per share of charges for amortisation of purchased intangible assets, other acquisition-related charges and retirement-related charges.
IBM said it continued to expect free cash flow to be relatively flat year to year.
It said third quarter highlights included:
* Diluted EPS from continuing operations: GAAP of $2.92; Operating (non-GAAP) of $3.30
* Revenue of $19.2 billion
* Strategic imperatives revenue of $34.9 billion over the trailing 12 months, up 10 percent; represents 45 percent of IBM revenue
- Third-quarter revenue up 11% (up 10% adjusting for currency)
* Cloud revenue of $15.8 billion over the trailing 12 months, up 25% year to year (up 26% adjusting for currency)
* As-a-service annual exit run rate of $9.4 billion in the quarter, up 25% year to year (up 24% adjusting for currency)
IBM chairman, president and chief executive Ginni Rometty said: 'In the third quarter we achieved double-digit growth in our strategic imperatives, extended our enterprise cloud leadership, and expanded our cognitive solutions business.
'There was enthusiastic adoption of IBM's new z Systems mainframe, which delivers breakthrough security capabilities to our clients.'