IBM's Financial Performance in Q4

International Business Machines Corporation (IBM) announced on Wednesday a 1% year-on-year increase in revenue, reaching $17.6 billion in the final quarter of fiscal 2024. Despite this growth, diluted earnings per share experienced a 12% decline, settling at $3.11 compared to the same period in 2023.

Annual Financial Overview

For the entire fiscal year, IBM saw a 1.4% rise in revenue to $62.7 billion. However, the company faced a significant 21% drop in diluted earnings per share, which amounted to $6.42 each. The gross profit, on the other hand, saw a slight increase of 1.6% year-on-year, totaling $10.4 billion, while net income fell by 11% to $2.9 million annually.

CEO's Statement on AI Business Growth

"Our generative AI book of business has now exceeded $5 billion since inception, marking a nearly $2 billion increase quarter over quarter," stated CEO Arvind Krishna, highlighting the company's advancements in AI technology.

Stock Market Reaction

Following the announcement, IBM's stock surged by 10.91% in after-hours trading, reaching $253.58 per share, as the results surpassed analysts' expectations.