IBM(IBM) The Motley Fool·2024-04-25 10:27Core Insights - IBM has transformed itself into a software and consulting company, generating most of its revenue from these segments while hardware contributes a smaller portion [1] - The company has focused on hybrid cloud and AI as key growth areas, highlighted by significant acquisitions and divestitures [2][5] Revenue Breakdown - In 2023, IBM generated 26.3 billion (42.5%) - Consulting: 14.6 billion (23.6%) - Financing: $741 million (1.2%) [3] Business Focus - IBM's software offerings include cybersecurity, automation, data analytics, AI, and transaction processing, with a hybrid cloud platform built on Red Hat [3] - The consulting segment aids clients in modernizing applications and digital transformation, often utilizing IBM products alongside partnerships with other tech providers [3] Growth Outlook - IBM has successfully returned to growth, with three-quarters of its revenue now from software and consulting, and half from recurring sources [5] - Revenue is projected to rise in 2024, alongside improvements in free cash flow, positioning IBM as a leader in enterprise hybrid cloud and AI markets [5]