The company’s software unit, which includes hybrid platform and solutions, transaction processing, and others, posted revenues of $7.51bn in Q4 2023, which is a year-over-year increase of 3.1%, compared to $7.28bn in Q4 2022
IBM reported net income of $3.28bn for the fourth quarter of 2023. (Credit: Orrling/Wikimedia Commons)
International Business Machines (IBM) has reported a net income of $3.28bn for the fourth quarter of 2023 (Q4 2023) that ended 31 December 2023, an increase of 21% compared to $2.71bn in the same quarter of the previous year.
The company’s earnings per share (EPS) for Q4 2023 were $3.55, compared to $2.96 in Q4 2022, which represents a growth of 20%.
Its total revenue for the reported quarter showcased an increase of 4% at around $17.38bn, compared to revenue of $16.69bn earned in Q4 2022.
IBM’s software unit, which includes hybrid platform and solutions, transaction processing, and others, posted revenues of $7.51bn in Q4 2023, which is a year-over-year (YoY) increase of 3.1%, compared to $7.28bn in Q4 2022.
Red Hat’s revenues in the reported quarter were up by 8% YoY.
IBM’s consulting business, which includes business transformation, technology consulting, and application operations, reported a 4.8% growth in Q4 2023 revenues to $5bn. The revenues for the unit in Q4 2022 were $4.77bn.
The company’s infrastructure business posted revenues of $4.6bn in the reported quarter, an increase of 2.7%, compared to $4.48bn earned in Q4 2022. The business includes hybrid Infrastructure, infrastructure support, and others.
IBM’s financing businesses posted revenues of $175m in the reported quarter at 1.74% growth, compared to $172m in Q4 2022.
The company stated that it anticipates a constant currency revenue growth consistent with its mid-single digit model for 2024.
For the full year 2023, IBM’s net income was $7.5bn, an increase of 357% compared to $1.64bn in 2022. Revenues for the full year 2023 were $61.8bn, an increase of 2% compared to $60.5bn in the previous year.
IBM chairman and CEO Arvind Krishna said: “In the fourth quarter, we grew revenue in all of our segments, driven by continued adoption of our hybrid cloud and AI offerings. Client demand for AI is accelerating and our book of business for watsonx and generative AI roughly doubled from the third to the fourth quarter.
“For the year, revenue growth was in line with our expectations, and we exceeded our free cash flow objective.
“Based on the strength of our portfolio and demonstrated track record of innovation, for 2024 we expect revenue performance in line with our mid-single digit model and about $12 billion in free cash flow.”