IBM grew third-quarter revenue 5 percent to $17.1bn and now expects full-year free cash flow to rise by more than $1bn

IBM raised its cash forecast. In third-quarter results filed with the SEC on Wednesday, the company said it now expects full-year free cash flow to rise by more than $1bn on last year, while keeping its forecast of 4 to 5 percent revenue growth at constant currency.

Revenue in the quarter rose 5 percent to $17.1bn. Software, the largest segment, grew 8 percent to $7.8bn, with Red Hat up 11 percent and the data business up 19 percent. Consulting was flat at $5.3bn. Infrastructure rose 4 percent to $3.7bn, although the two halves inside it ran in opposite directions: IBM Z mainframe revenue fell 20 percent while distributed infrastructure grew 31 percent.

Diluted earnings from continuing operations were $2.31 a share, up 26 percent. On IBM's operating measure they were $2.95, up 11 percent.

Free cash flow for the quarter was $3.0bn, $0.7bn more than a year earlier, and $7.8bn over nine months.