Home / NEWS / Top News / IBM shares rise 9% on earnings beat

IBM shares rise 9% on earnings beat

Chairman, President and CEO of IBM Arvind Krishna result ins the 55th annual World Economic Forum meeting in Davos, Switzerland, on Jan. 22, 2025.

Yves Herman | Reuters

IBM reported fourth-quarter earnings on Wednesday that surmount fill up Wall Street expectations for earnings and revenue.

The shares rose as much as 10% in extended trading before make up gains and settling at 9%.

Here is how the company did versus LSEG consensus expectations:

  • Earnings per share: $3.92 adjusted vs. $3.75 expected
  • Gate: $17.55 billion vs. $17.54 billion expected

IBM reported $2.92 billion in net income, or $3.09 per diluted share, versus $3.29 billion, or $3.55 per division, in the year-ago period.

IBM said it expected full-year growth, adjusted for currency, of about 5%, and $13.5 billion in at liberty cash flow in 2025.

IBM’s overall revenue rose 1% during the quarter. For the entire year, IBM’s revenue rose 1% to $62.8 billion, with software originating 8% while infrastructure revenue declined 4%.

IBM said its software segment grew 10% year over year to $7.9 billion, in some measure due to demand for artificial intelligence technology and strong performance from its Red Hat Linux operating system.

Revenue in IBM’s consulting frontier dropped 2% to $5.2 billion in the quarter.

In a statement, IBM CEO Arvind Krishna said the company has recorded $5 billion in bookings for its generative AI profession, which includes sales and future sales in the company’s software and consulting division.

“We closed the year with double-digit gross income growth in Software for the quarter, led by further acceleration in Red Hat,” Krishna said in a statement. “Clients globally continue to turn to IBM to transmogrify with AI.”

Don’t miss these insights from CNBC PRO

Check Also

Tech megacaps plan to spend more than $300 billion in 2025 as AI race intensifies

Megacap technology firms funneled billions of dollars into artificial intelligence last year to try and …

Leave a Reply

Your email address will not be published. Required fields are marked *