IBM reported $17.6 billion in revenue in Q4 2024, up 1% compared to last year.
Software revenue grew 10%, while Consulting revenue declined 2% and Infrastructure revenue fell 8%.
Since inception, the company's Generative AI business has reached $5 billion, an increase of nearly $2 billion from quarter to quarter.
A 1% increase in revenue was recorded for the full year 2024 at $62.8 billion. There was an increase in free cash flow to $12.7 billion, exceeding expectations.
Software revenue increased by 8%, compared to 1% declines in Consulting and 4% decreases in Infrastructure. There was an improvement in GAAP gross profit margin to 56.7%.
IBM projects free cash flow of about $13.5 billion by 2025 at constant currency and revenue growth of at least 5%.
"We closed the year with double-digit revenue growth in Software for the quarter, led by further acceleration in Red Hat. Clients globally continue to turn to IBM to transform with AI. Our generative AI book of business now stands at more than $5 billion inception-to-date, up nearly $2 billion quarter-over-quarter," said Arvind Krishna, IBM chairman, president and chief executive officer.
"Three years ago, we laid out a vision for a faster-growing, more-profitable IBM. I'm proud of the work the IBM team has done to meet or exceed our commitments. With our focused strategy, enhanced portfolio, and culture of innovation, we're well-positioned for 2025 and beyond and expect revenue growth of at least 5% and free cash flow of about $13.5 billion this year."
Fourth-Quarter Highlights
Revenue
- Revenue of $17.6 billion, up 1%, up 2% at constant currency
- Software revenue up 10%, up 11% at constant currency
- Consulting revenue down 2%, down 1% at constant currency
- Infrastructure revenue down 8%, down 6% at constant currency
Profit
- Gross Profit Margin: GAAP: 59.5%, up 40 basis points; Operating (Non-GAAP): 60.6%, up 50 basis points
Full-Year Highlights
Revenue
- Revenue of $62.8 billion, up 1%, up 3% at constant currency
- Software revenue up 8%, up 9% at constant currency
- Consulting revenue down 1%, up 1% at constant currency
- Infrastructure revenue down 4%, down 3% at constant currency
Profit
- Gross Profit Margin: GAAP: 56.7%, up 120 basis points; Operating (Non-GAAP): 57.8%, up 130 basis points
Cash Flow
- Net cash from operating activities of $13.4 billion; free cash flow of $12.7 billion
At the time of writing, IBM Common Stock's (NYSE: IBM) share price was US$228.63, up $2.97 (1.32%). Its market cap was approximately $211.40 billion.
