IBM announces satisfactory financial results in 2023 earnings call

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Written on Jan 24, 2024

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Today, IBM reported its final Q4 and full-year 2023 financial results.
The titan tech company posted strong FY earnings, including revenues and profits.
The financial results also reflected IBM’s growing commitment to all things AI.

Today, iconic computing company IBM (NYSE: IBM) announced upbeat fourth quarter and year-end 2023 financial results.

IBM saw its revenue push up 4.0% year-on-year to $17.4 billion. In terms of gross profit, it was $10.26 billion – up 6.0% versus the same quarter last year. On a per-share basis, the tech company earned $3.87 in Q4.

IBM reported a 2.0% and 5.0% growth in its full-year revenue and gross profit, respectively, as well on Wednesday.

Ahead of the announcement, expectations from the market reflected the assumption that IBM would continue to focus on its software in order to better position it for a coming AI cash cow, which is not yet bearing fruit.

Ahead of expectations

IBM came in ahead of expectations in its fiscal Q4. Analysts had called for $17.30 billion in revenue on $3.78 a share of profit for the fourth quarter.

Market participants also expected that software sales would be up five percent, while items like hardware and infrastructure would be down.

In comparison, IBM saw its software sales pop 3.0% only in the recently concluded quarter. But that weakness was offset by a 3.0% increase also in the infrastructure revenue.

IBM stock is up more than 5.0% in extended hours on Wednesday following the release of its quarterly financial results. Its shares are now up 50% versus their 52-week low.