Chairman, President and CEO of IBM Arvind Krishna attends the fifty fifth annual World Financial Discussion board assembly in Davos, Switzerland, on Jan. 22, 2025.
Yves Herman | Reuters
IBM reported better-than-expected fourth-quarter outcomes on Wednesday and issued a forecast that barely topped estimates.
Right here how the corporate did in comparison with LSEG consensus estimates:
- Earnings per share: $4.52 adjusted vs. $4.32 anticipated
- Income: $19.69 billion vs. $19.23 billion anticipated.
Income rose 12% through the interval from $17.6 billion a 12 months earlier. Internet earnings elevated to $5.6 billion, or $5.88 per share, from $2.92 billion, or $3.09 per share, within the year-ago interval.
IBM stated it expects full-year income progress to exceed 5%, decelerating from 8% final 12 months. Analysts anticipate gross sales progress of 4.6% in 2026, in line with LSEG. Free money movement ought to improve by $1 billion after reaching $14.7 billion in 2025, the corporate stated.
CEO Arvind Krishna stated in a launch that the corporate’s generative synthetic intelligence e book of enterprise hit greater than $12.5 billion.
“This capped a powerful 2025 for IBM the place we exceeded expectations for income, revenue and free money movement,” Krishna wrote.
IBM stated software program income rose 14% to $9 billion in fourth quarter, benefitting from automation, information and Pink Hat merchandise. Infrastructure gross sales elevated 21% to $5.1 billion, with 67% year-over-year progress in its IBM Z Techniques line of mainframe computer systems.
The corporate’s board of administrators accepted a per-share dividend of $1.68, payable on March 10.
