“continue to expect to expand Consulting pre-tax margin by at least 1 point as we capitalize on the yield of our productivity actions.”

In context

“. These initiatives provide additional flexibility, enabling reinvestment in the business to support future growth, contributing to margin expansion and increasing financial flexibility. Let me spend a minute on our expectations for constant currency revenue and pretax profit performance by segment. In Software, we continue to expect revenue growth in line with software's mid-single-digit model. This revenue growth drives operating leverage, and we still expect software pre-tax margin to expand by about 2 points year-to-year. In Consulting, we continue to see strong demand for digital transformations and application modernization. So as I said, we are seeing some pressure on more discretionary projects in the United States. We now see Consulting revenue growth in the range of 6% to 8% and continue to expect to expand Consulting pre-tax margin by at least 1 point as we capitalize on the yield of our productivity actions. Infrastructure revenue is roughly flat over the midterm model horizon, with performance in any year reflecting product cycle dynamics. We're about to wrap on the z16 introduction. As a result, we expect 2023 infrastructure revenue to decline with pre-tax margin in the low teens. To provide some perspective, Infrastructure should impact IBM's overall revenue growth by over 1 point. With these segment dynamics, we would expect IBM's operating pre-tax margin to expand by about 0.5 point year-to-year. That's in line with our model. And we continue to expect our tax rate to be in the mid- to high teens range. As I mentioned earlier, the dollar has strengthened over the last 90 days. We now expect currency translation to be fairly neutral to our revenue growth for the year, which is about 0.5 p”