IBM on Wednesday, January 29, released information about its earnings for the fourth quarter of 2024, which exceeded Wall Street’s preliminary expectations.
During the extended trading, the value of the mentioned company shares demonstrated growth of as much as 10%. Then the upward dynamic weakened slightly. As a result of this circumstance, the growth of the mentioned indicator stopped at the 9% mark.
IBM’s revenue for the last quarter of 2024 was $17.55 billion. This indicator increased by 1% year-on-year. The LSEG consensus forecast predicted that the company’s revenue for the mentioned period would be $17.54 billion.
The firm’s net income for the fourth quarter of 2024 was recorded at the $2.92 billion mark. For the same period last year, this figure amounted to $3.29 billion.
Adjusted earnings per share were fixed at the $3.92 mark. The LSEG consensus forecast predicted that this figure would be $3.75.
The company expects full-year growth, adjusted for currency, of about 5%, and $13.5 billion in free cash flow in 2025.
IBM’s revenue for the whole of 2024 was $62.8 billion. This indicator increased by 1% year-on-year. Revenue from software grew by 8%. At the same time, revenue from infrastructure fell by 4%.
The company’s software segment generated revenue of $7.9 billion for the fourth quarter of 2024. This indicator showed an increase of 10% year-on-year. To a large extent, the mentioned result is due to the high level of consumer demand for artificial intelligence technology and the strong performance from the Red Hat Linux operating system.
The company’s consulting unit generated revenue of $5.2 billion for the fourth quarter of 2024. This indicator decreased by 2% year-on-year.
IBM chief executive officer Arvind Krishna stated that the company recorded $5 billion in bookings for its generative artificial intelligence business. This business includes sales and future sales in software and consulting units of the firm.
Arvind Krishna stated that the company closed the year with double-digit revenue growth in Software for the quarter, led by further acceleration in Red Hat. He also noted that clients globally continue to turn to IBM to transform with artificial intelligence.
In this case, there is another example of the growing importance of AI. Currently, artificial intelligence is actively scaling in the space of the technology sector and is used as a working tool in many industries. Companies that are somehow involved in AI development and integration are the beneficiaries of the mentioned process. In this context, IBM’s example is significant. AI contributes to the growth of the company’s financial performance. IBM’s respective prospects are positive, as the digital intelligence industry continues to move along the trajectory of intensive evolution and shows no signs of weakening or similar probabilities.
At the same time, it is worth noting that the issue of cybersecurity has become more relevant against the background of the active development of artificial intelligence. AI, like any technology, can be used not only in constructive scenarios but also to achieve what can be described as negative goals. Cybercriminals, among other things, can leverage artificial intelligence as part of their activities. Personal awareness of users is important to counteract the relevant threat. For example, an Internet search query such as how to know if my camera is hacked will allow anyone to get information about signs of unauthorized access to the device.
