IBM Reports Q4 Earnings Beat, Shares Rise 9%
IBM reported fourth-quarter earnings that topped Wall Street expectations for earnings and revenue, sending shares up as much as 10% in extended trading before settling at 9%. The company reported $2.92 billion in net income, or $3.09 per diluted share, versus $3.29 billion, or $3.55 per share, in the year-ago period.
IBM’s overall revenue rose 1% during the quarter, with software growing 8% and infrastructure revenue declining 4%. The company’s software segment grew 10% year over year to $7.9 billion, driven by demand for artificial intelligence technology and strong performance from its Red Hat Linux operating system.
Revenue in IBM’s consulting division dropped 2% to $5.2 billion in the quarter. However, the company reported $5 billion in bookings for its generative AI business, which includes sales and future sales in the company’s software and consulting division.
“We closed the year with double-digit revenue growth in Software for the quarter, led by further acceleration in Red Hat,” said IBM CEO Arvind Krishna. “Clients globally continue to turn to IBM to transform with AI.”
IBM expects full-year growth, adjusted for currency, of about 5%, and $13.5 billion in free cash flow in 2025.
