Shares of IBM (IBM) are up 7% after the technology company delivered fourth-quarter financial results that topped Wall Street’s expectations.
The company reported earnings per share (EPS) of $3.87 U.S. versus $3.78 U.S. that had been expected among analysts.
Revenue for the October through December quarter totaled $17.38 billion U.S. versus $17.30 billion U.S. that had been forecast on Wall Street. IBM’s sales were up 4% from a year ago.
Free cash flow for all of 2023 totaled $11.20 billion U.S., more than the $10.50 billion U.S. that management had previously guided for.
The company’s Q4 gross margin of 59.1% was the highest since 1999.
IBM said that its software revenue came in at $7.51 billion U.S. during Q4, up 3% from a year earlier. Consulting revenue grew 6% to $5.05 billion U.S.
Additionally, the company said that its business related to generative artificial intelligence (A.I.) was double the size it was in Q3 of last year.
Looking forward, IBM said that it expects $12 billion U.S. in 2024 free cash flow and revenue growth in the mid-single digits.
Before today (Jan. 25), IBM’s stock had gained 8% this year and increased 24% over the last 12 months to trade at $173.93 U.S. per share.
