Given this economic environment, marked by elevated inflation, historically high interest rates, and significant uncertainty, it shouldn't be surprising that many enterprises are pulling back on their tech spending. Projects that would have been green-lit even a year ago are being delayed or shelved as organizations look to cut spending and preserve cash.

Tech projects that align with those new priorities, however, are still in demand. International Business Machines (NYSE: IBM) has been seeing weak demand for discretionary projects all year, but it's enjoying a tailwind from the kind of digital transformation and application modernization projects that aim to boost efficiency and productivity.

This solid demand helped IBM deliver third-quarter results that were above analysts' expectations. IBM reported revenue of $14.8 billion, up 4.6% and $70 million ahead of the consensus estimate. Adjusted earnings per share came in at $2.20, up 22% year over year and $0.07 ahead of analysts' average expectations.

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Source Fool.com