🔹 EPS: $3.92 (Est. $3.77) 🟢 ; DOWN -12% YoY
🔹 Revenue: $17.6B (Est. $17.6B) 🟡; UP +1% YoY, +2% constant currency
🔹 Gross Profit Margin: 59.5% (Est. 60.3%) 🟡; UP +40 bps YoY
🔹 Operating Income Margin (Non-GAAP): 24.3% (Est. 24.3%) 🟡
🔹 Gross Profit (Non-GAAP): $10.6B (Est. $10.60B) 🟡; UP +2% YoY
Segment Revenue Breakdown:
🔹 Software Revenue: $7.9B (Est. $7.93B) 🟡; UP +10.4% YoY
- Hybrid Platform & Solutions: UP +11% YoY
- Red Hat: UP +16% YoY
- Automation: UP +15% YoY
- Data & AI: UP +4% YoY
- Security: UP +4% YoY
- Transaction Processing: UP +10% YoY
🔹 Consulting Revenue: $5.2B (Est. $5.26B) 🔴; DOWN -2.0% YoY
- Business Transformation: UP +1% YoY
- Technology Consulting: DOWN -7% YoY
- Application Operations: DOWN -4% YoY
🔹 Infrastructure Revenue: $4.3B (Est. $4.17B) 🟢; DOWN -7.6% YoY
- Hybrid Infrastructure: DOWN -10% YoY
- IBM Z: DOWN -21% YoY
- Distributed Infrastructure: Flat YoY
- Infrastructure Support: DOWN -2% YoY
🔹 Financing Revenue: $0.2B (Est. $0.18B) 🟢; DOWN -2.5% YoY
Cash Flow & Balance Sheet:
🔹 Operating Cash Flow: $4.3B (Est. $4.44B) 🔴; DOWN $0.1B YoY
🔹 Free Cash Flow: $6.2B (Est. $5.59B) 🟢; UP +$0.1B YoY
🔹 Cash & Marketable Securities: $14.8B; UP +$1.3B from year-end 2023
2025 Outlook:
🔹 Revenue Growth: At least +5% constant currency
🔹 Free Cash Flow: About $13.5B
CEO & CFO Commentary:
🔸 CEO Arvind Krishna: "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."
🔸 CFO James Kavanaugh: "With strong performance across our Software portfolio, we continue to drive solid fundamentals within our business. As a result, we generated $12.7 billion in free cash flow, far outpacing our expectation for the year."