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President, President and Executive Director of IBM Arvind Krishna attends the 55th Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland, on January 22, 2025.
Yves Herman | Reuters
IBM reported Fourth Quarter Gains on Wednesday That exceeded Wall Street expectations for profits and income.
The shares increased up to 10% in extended operations before giving up profits and settling by 8%.
This is how the company did versus LSEG’s consensus expectations:
- Profit per action: $ 3.92, adjusted, versus $ 3.75 expected
- Revenue: $ 17.55 billion, versus $ 17.45 billion expected
IBM reported $ 2.92 billion in net income, or $ 3.09 per diluted action, versus $ 3.29 billion, or $ 3.55 per share, in the period of the previous year.
IBM said he expected a growth of the whole year, adjusted by currency, of approximately 5% and $ 13.5 billion in free cash flow in 2025.
IBM general revenues increased 1% during quarter. Throughout the year, IBM revenues increased 1%to $ 62.8 billion, with software that grew by 8%, while infrastructure revenues decreased by 4%.
IBM said its software segment grew 10% year after year to $ 7.9 billion, partly thanks to the demand for artificial intelligence technology and a strong performance of its Red Hat Linux operating system.
The income in the IBM consulting division fell 2% to $ 5.2 billion in the quarter.
In a statement, the IBM CEO, Arvind Krishna, said the company has registered $ 5 billion in reserves for its generative AI business, which includes future sales and sales in the company’s software and consulting division.
“We close the year with a two -digit income growth in the quarter software, led by greater acceleration in Red Hat,” Krishna said in a statement. “Customers worldwide continue to turn to IBM to transform with AI.”
