For the quarter ended December 2024, IBM (IBM) reported revenue of $17.55 billion, up 1% over the same period last year. EPS came in at $3.92, compared to $3.87 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $17.56 billion, representing a surprise of -0.05%. The company delivered an EPS surprise of +5.09%, with the consensus EPS estimate being $3.73.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compa ...

IBM (IBM) came out with quarterly earnings of $3.92 per share, beating the Zacks Consensus Estimate of $3.73 per share. This compares to earnings of $3.87 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.09%. A quarter ago, it was expected that this technology and consulting company would post earnings of $2.27 per share when it actually produced earnings of $2.30, delivering a surprise of 1.32%.Over the last four quarters, t ...

Chairman, President and Chief Executive Officer of IBM Arvind Krishna attends the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, Jan. 22, 2025.IBM reported fourth-quarter earnings on Wednesday that topped Wall Street expectations for earnings and revenue.The shares rose 10% in extended trading. It's the largest rise in IBM's stock price since March 2020. Here's how the company did versus LSEG consensus expectations:Earnings per share: $3.92, adjusted, versus $3.75 expectedRevenue: $17 ...

Software Revenue Growth - Software revenue grew by 10% in Q4 2024, reaching $7.9 billion, with Red Hat leading the growth at 16%[14][8] - Full-year 2024 revenue was $62.8 billion, up 1% (3% at constant currency), with Software revenue up 8%[8][16] - Software segment revenue grew to $7.924 billion in Q4 2024, a 10.4% increase from $7.179 billion in Q4 2023[25] - Software segment revenue grew 10.4% Y/Y to $7.924 billion in Q4 2024, with a segment profit margin of 39.2%[36] - Full-year 2024 software revenue increased 8.3% to $27.085 billion, with a segment profit margin of 32.1%[37] Generative AI Business - The company's generative AI book of business reached over $5 billion, up nearly $2 billion quarter over quarter[2] Free Cash Flow and Financial Performance - Free cash flow for 2024 was $12.7 billion, exceeding expectations and up $1.5 billion year over year[9][12] - The company expects full-year 2025 revenue growth of at least 5% and free cash flow of about $13.5 billion[2][18] - Net cash from operating activities in 2024 was $13.4 billion, down $0.5 billion year over year[12] - Net cash provided by operating activities was $4.330 billion in Q4 2024, slightly down from $4.463 billion in Q4 2023[30] - Net Cash from Operations per GAAP for 2024 was $13.445 billion, with Free Cash Flow of $12.749 billion[52] Gross Profit Margin - Q4 2024 gross profit margin was 59.5% (GAAP) and 60.6% (Non-GAAP), up 40 and 50 basis points respectively[6][8] - Gross profit margin improved to 59.5% in Q4 2024, up from 59.1% in Q4 2023[25] - Gross Profit for 2024 was $35.551 billion, with a Gross Profit Margin of 56.7%, increasing to $36.275 billion and 57.8% after adjustments[46] - Gross Profit for 2023 was $34.3 billion, with a Gross Profit Margin of 55.4%, increasing to $34.931 billion and 56.5% after adjustments[47] Consulting and Infrastructure Revenue - Consulting revenue declined by 2% in Q4 2024, while Infrastructure revenue dropped by 8%[8][14] - Consulting segment revenue declined 2.0% Y/Y to $5.175 billion in Q4 2024, with a segment profit margin of 11.7%[36] - Infrastructure segment revenue decreased 7.6% Y/Y to $4.256 billion in Q4 2024, with a segment profit margin of 25.0%[36] - Full-year 2024 consulting revenue declined 0.9% to $20.692 billion, with a segment profit margin of 9.9%[37] Cash and Marketable Securities - IBM ended Q4 2024 with $14.8 billion in cash, restricted cash, and marketable securities, up $1.3 billion from 2023[13] - Cash and cash equivalents increased to $13.947 billion at the end of 2024, up from $13.068 billion at the end of 2023[28] Total Revenue and Assets - Total revenue for Q4 2024 increased to $17.553 billion, up 1% from $17.381 billion in Q4 2023[25] - Total assets grew to $137.175 billion at the end of 2024, compared to $135.241 billion at the end of 2023[28] Net Income and Earnings - Net income from operations decreased to $2.915 billion in Q4 2024, down from $3.288 billion in Q4 2023[30] - Net income for Q4 2024 was $2.9 billion, a decrease of $0.4 billion (12.1%) compared to Q4 2023[33] - Full-year 2024 net income was $6.0 billion, down $1.5 billion (20.0%) from 2023[33] - Income from Continuing Operations for 2024 was $6.015 billion, increasing to $9.684 billion after adjustments, with an Income Margin of 15.4%[46] - Income from Continuing Operations for 2023 was $7.514 billion, increasing to $8.87 billion after adjustments, with an Income Margin of 14.3%[47] Dividends and Shareholder Returns - The company returned $1.5 billion to shareholders in dividends during Q4 2024[11] - The company paid $1.546 billion in dividends in Q4 2024, up from $1.518 billion in Q4 2023[30] R&D Expenses - R&D expenses increased to $1.967 billion in Q4 2024, up 12.5% from $1.748 billion in Q4 2023[25] Pension Settlement Charges - Pension settlement charges impacted 2024 results with $2.7 billion in Q3 and $0.4 billion in Q4[26] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $5.6 billion, up $0.1 billion (1.8%) from Q4 2023[33] - Full-year 2024 adjusted EBITDA was $16.4 billion, an increase of $0.9 billion (5.8%) compared to 2023[33] - Adjusted EBITDA for 2024 was $16.4 billion, compared to $15.5 billion in 2023[54] Pre-tax Income and Earnings Per Share - Q4 2024 operating (non-GAAP) pre-tax income from continuing operations was $4.3 billion, up $0.1 billion (2.4%) from Q4 2023[33] - Pre-tax Income from Continuing Operations for 2024 was $5.797 billion, increasing to $11.207 billion after adjustments, with a Pre-tax Income Margin of 17.9%[46] - Pre-tax Income from Continuing Operations for 2023 was $8.69 billion, increasing to $10.311 billion after adjustments, with a Pre-tax Income Margin of 16.7%[47] - Diluted Earnings Per Share from Continuing Operations for 2024 was $6.42, increasing to $10.33 after adjustments[46] - Diluted Earnings Per Share from Continuing Operations for 2023 was $8.15, increasing to $9.62 after adjustments[47]

Double-digit Software revenue growth; Free cash flow well-exceeds full-year expectationARMONK, N.Y., Jan. 29, 2025 /PRNewswire/ -- IBM (NYSE: IBM) today announced fourth-quarter 2024 earnings results."We closed the year with double-digit revenue growth in Software for the quarter, led by further acceleration in Red Hat. Clients globally continue to turn to IBM to transform with AI. Our generative AI book of business now stands at more than $5 billion inception-to-date, up nearly $2 billion quarter over quar ...

Core Viewpoint - IBM is expected to report higher revenues in its Software segment for the fourth quarter of 2024, driven by product innovation and strong AI traction across various sectors [1]. Group 1: Software Segment Performance - The Software segment includes Hybrid Platform & Solutions, which encompasses software services, Red Hat, automation, and data & AI businesses, as well as Transaction Processing [2]. - The Zacks Consensus Estimate for Software revenues is projected at $7.82 billion, an increase from $7.51 billion in the same quarter last year, indicating a year-over-year rise of approximately 4.1% [8]. Group 2: Product Innovations and Acquisitions - IBM introduced the IBM Guardium Data Security Center to enhance data security across diverse environments, featuring a consolidated dashboard for monitoring and governance [3]. - The company acquired Prescinto, a provider of asset performance management software for the renewable energy sector, which integrates AI technology to improve asset management functionalities [5]. - The integration of Prescinto's technology is expected to enhance IBM's Maximo Application Suite capabilities, strengthening its position in the energy and utility sector [6]. Group 3: Strategic Partnerships - IBM formed a strategic partnership with Lockheed Martin to integrate its Granite large language models, aimed at accelerating AI-driven innovation in aerospace and defense applications, likely contributing to incremental revenues in the Software segment [7]. Group 4: Overall Financial Expectations - The total revenue consensus estimate for IBM stands at $17.56 billion, compared to $17.38 billion in the prior-year quarter, while the earnings consensus is pegged at $3.74 per share, down from $3.87 in the same quarter last year [9]. - IBM's earnings model suggests a likely earnings beat for the fourth quarter, supported by a positive Earnings ESP of +0.31% and a Zacks Rank of 3 [10].

Core Viewpoint - IBM is expected to report higher revenues in its Consulting segment for the fourth quarter of 2024, driven by increased demand for technology consulting and business transformation services [1]. Factors at Play - The Consulting segment includes Business Transformation, Technology Consulting, and Application Operations, providing consulting and application management services that leverage industry, technology, and business strategy [1]. - IBM Consulting launched Autonomous Security for Cloud, an AI-driven solution for automating cloud security management, aimed at enhancing cloud adoption on Amazon Web Services [2]. - The capabilities of IBM Consulting Advantage have been expanded, utilizing Granite 3.0 large language models to improve clients' return on investments, with specific solutions for Business Operations and Cloud Transformation [3]. - In collaboration with Dun & Bradstreet, IBM Consulting services supported the development of a generative AI assistant, D&B Ask Procurement, powered by IBM watsonx technology [4]. - IBM formed a multi-year strategic partnership with Ferrari to enhance fan engagement and data analytics, which is expected to generate additional revenues in the Consulting segment [5]. Overall Expectations - The Zacks Consensus Estimate for Consulting revenues is $5.27 billion, up from $5.04 billion in the same quarter last year, with an estimated revenue of $5.38 billion indicating a 2% year-over-year improvement [6]. - The total revenue estimate for IBM stands at $17.56 billion, compared to $17.38 billion in the prior-year quarter, with earnings expected to be $3.74 per share, down from $3.87 [7]. Earnings Whispers - IBM is predicted to likely beat earnings expectations for the fourth quarter, supported by a positive Earnings ESP of +0.31% and a Zacks Rank of 3 [8].

International Business Machines (IBM 0.21%) is set to report its fourth-quarter results after the market closes on Wednesday, Jan. 29. IBM stock has surged 65% over the past three years as the company spun off a big low-growth business and settled into a strategy focused on hybrid-cloud and AI platforms.With IBM trading near its all-time high, is it smart to buy the stock now or wait until the earnings dust has settled?For long-term investors, timing doesn't really matterShares of IBM could do just about an ...

Global survey reveals 75% of surveyed organizations pursuing a consolidated approach to security agree better integration across security, hybrid cloud, AI and other technology platforms is crucialARMONK, N.Y. and SANTA CLARA, Calif., Jan. 28, 2025 /PRNewswire/ -- New global research from the IBM (NYSE: IBM) Institute for Business Value (IBV) and Palo Alto Networks® (NASDAQ: PANW), found that surveyed organizations are facing security complexity challenges as they juggle an average of 83 different security ...

jozzeppe IBM (NYSE:IBM) is scheduled to report their Q4 ’24 earnings after the close of business on Wednesday, January 29th, 2025. Sell-side consensus is expecting $3.75 in earnings per share on $17.45 billion in revenue for an expected y-o-y decline of ...