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 reported Fourth quarter earnings on Wednesday This outweighed the expectations on Wall Street due to earnings and revenue.
The shares increased by as much as 10% in extended trading before renounced gains and settled to 8%.
Here’s how the company is in relation to LSEG expectation of consensus:
- Earnings per share: $ 3,92, adapted, opposite the expected $ 3.75
- Income: Expected $ 17.55 billion, opposite $ 17.45 billion
IBM reported $ 2.92 billion with net revenue, or $ 3.09 per diluted section, compared to $ 3,29 billion or $ 3.55 per share, in the period before it was before.
IBM said he expects a year -round growth, adapted to currencies, of about 5% and $ 13.5 billion in the 2025 free cash flow.
The total revenue of IBM increased by 1%during the quarter. All year long, IBM revenue increased by $ 1%to $ 62.8 billion and the software increased by 8%, while infrastructure revenue reduced 4%.
IBM said his software segment increased by 10% compared to a year to $ 7.9 billion, partly thanks to the demand for artificial intelligence technology and strong performance from its Red Hat Linux operating system.
The revenue at the IBM consulting division in the quarter dropped by $ 2% to $ 5.2 billion.
In a statement, the IBM CEO of Arvind Krishna said the company recorded $ 5 billion reservations for its generative AI job, which includes sales and future sales in the company software and consultation.
“We closed the year with a two-digit revenue growth in the quarter software, led by further acceleration in Red HAT,” “Krishna said in a statement.” Global clients are still turning to IBM to transform with AI. “
