IBM’s stock surged 13% on Thursday after the company reported fourth-quarter earnings and revenue that surpassed Wall Street estimates. The Armonk-based firm’s software business, including Red Hat, was a bright spot, growing 10%. Consulting revenue fell 2%, while infrastructure revenue dropped 8%.
Analysts praised IBM’s solid overall software revenue of $7.9 billion, with growth accelerating for the fourth straight quarter. Generative AI bookings accelerated to $5 billion, up 67% from last quarter.
For 2025, IBM forecasts revenue growth of 5% and free cash flow of $13.5 billion, beating analysts’ estimates. The company’s acquisition of Hashicorp is expected to close by the end of March, adding about one point to total revenue growth for the year.
IBM’s stock has gained 2% in 2025 and advanced nearly 20% over the past 52 weeks, with a Composite Rating of 80 out of 99 according to IBD Stock Checkup. The company will host an investor day on February 4, where bookings from artificial intelligence-related products and services are expected to be discussed.
Source: https://www.investors.com/news/technology/ibm-stock-ibm-earnings-news-q42024