(Boursier.com) — IBM , the American technology services giant, soared by more than 8% last night after market trading on Wall Street. The group published operating earnings per share of $3.87 for its fourth fiscal quarter, while the consensus was $3.76. Quarterly revenue also beat expectations at $17.38 billion. Management is also banking on artificial intelligence, judging that the development of AI uses by customers should bring “incredible value”. For the past quarter, revenues increased by more than 4%, with an increase of 6% in consulting to $5 billion, but a decline in software to $7.5 billion. Red Hat only grew 8%, far from its historical performance.
The group has provided fairly solid revenue and cash flow guidance for the 2024 financial year. Thus, IBM is counting on free cash flow of around $12 billion for the financial year, well above the consensus which did not exceed the 11 billion. Revenue growth this year is expected at mid-single digits, compared to 3% consensus. Armonk’s group also mentioned expected staff reductions this year. “Customer demand for AI is accelerating and our business volume for Watsonx and generative AI almost doubled between the third and fourth quarters,” CEO Arvind Krishna said of the platform. AI from “Big Blue”.
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