Chairman, President and CEO of IBM Arvind Krishna attends the fifty fifth annual World Financial Discussion board assembly in Davos, Switzerland, on Jan. 22, 2025.
Yves Herman | Reuters
IBM reported fourth-quarter earnings on Wednesday that topped Wall Avenue expectations for earnings and income.
The shares rose as a lot as 10% in prolonged buying and selling earlier than giving up positive factors and settling at 9%.
Right here is how the corporate did versus LSEG consensus expectations:
- Earnings per share: $3.92 adjusted vs. $3.75 anticipated
- Income: $17.55 billion vs. $17.54 billion anticipated
IBM reported $2.92 billion in web revenue, or $3.09 per diluted share, versus $3.29 billion, or $3.55 per share, within the year-ago interval.
IBM mentioned it anticipated full-year progress, adjusted for foreign money, of about 5%, and $13.5 billion in free money move in 2025.
IBM’s general income rose 1% in the course of the quarter. For all the yr, IBM’s income rose 1% to $62.8 billion, with software program rising 8% whereas infrastructure income declined 4%.
IBM mentioned its software program section grew 10% yr over yr to $7.9 billion, partially on account of demand for synthetic intelligence expertise and robust efficiency from its Crimson Hat Linux working system.
Income in IBM’s consulting division dropped 2% to $5.2 billion within the quarter.
In an announcement, IBM CEO Arvind Krishna mentioned the corporate has recorded $5 billion in bookings for its generative AI enterprise, which incorporates gross sales and future gross sales within the firm’s software program and consulting division.
“We closed the yr with double-digit income progress in Software program for the quarter, led by additional acceleration in Crimson Hat,” Krishna mentioned in an announcement. “Shoppers globally proceed to show to IBM to remodel with AI.”
