In a statement, IBM CEO Arvind Krishna said the company has recorded $5 billion in bookings for its generative AI business.In a statement, IBM CEO Arvind Krishna said the company has recorded $5 billion in bookings for its generative AI business.
The shares rose 10% in extended trading. It’s the largest rise in IBM’s stock price since March 2020.
Here’s how the company did versus LSEG consensus expectations:
- Earnings per share: $3.92, adjusted, versus $3.75 expected
- Revenue: $17.55 billion, versus $17.45 billion expected
IBM reported $2.92 billion in net income, or $3.09 per diluted share, versus $3.29 billion, or $3.55 per share, in the year-ago period.
IBM’s overall revenue rose 1% during the quarter. For the entire year, IBM’s revenue rose 1% to $62.8 billion, with software growing 8%, while infrastructure revenue declined 4%.
IBM said that its software segment grew 10% year-over-year to $7.9 billion, partially thanks to demand for artificial intelligence technology and strong performance from its Red Hat Linux operating system.
Revenue in IBM’s consulting division dropped 2% to $5.2 billion in the quarter.
In a statement, IBM CEO Arvind Krishna said the company has recorded $5 billion in bookings for its generative AI business, which includes sales and future sales in the company’s software and consulting division.
“We closed the year with double-digit revenue growth in Software for the quarter, led by further acceleration in Red Hat,” ” Krishna said in a statement. “Clients globally continue to turn to IBM to transform with AI.”
