The President, President and Executive Director of the IBM Arvind Krishna participates in the 55th annual meeting of the World Economic Forum (WeF) in Davos, Switzerland, 22 January 2025.
Yves Herman | Reuters
IBM increased 12% on Thursday on the back of a Strong printing in the fourth quarter This has shown that artificial intelligence growth increases its software business.
The move put the shares in the pace for its best day of July 20, 2000, when the shares jumped 13%.
The company reported an adapted earnings of $ 3.92 per share adapted to $ 17.55 billion in revenue after the bell on Wednesday. The analysts surveyed by LSEG expected that earnings would come to $ 3.75 per share, and revenues reached $ 17.54 billion.
IBM reported an increase in revenue of 1%, while its software unit increased by 10% on an annual basis due to increasing demand for artificial intelligence and its operating system known as the Red Hat Linux. Executive director Arvind Krishna also said that the company had published $ 5 billion reservations for its generative AI segment.
“We closed the year with a double-digit revenue growth in a quarter software, led by further acceleration in Red HAT,” he said in a statement. “Global clients are still turning to IBM that will transform with AI.”
JPMORGAN Analyst Brian Essex held its neutral rating in stock, but said the company remains “encouraged” by IBM’s software power and growth path. Analyst Goldman Sachs James Schneider repeated his purchase assessment, saying that the software strength should benefit from the IBMS turnaround plan.
IBM sections have received 18% from the beginning of the year.
