IBM shares rise 9% on earnings beat

IBM reported fourth-quarter earnings that surpassed Wall Street expectations, with earnings per share of $3.92 and revenue of $17.55 billion. The company’s net income was $2.92 billion, and it anticipates 5% growth in 2025, with $13.5 billion in free cash flow. IBM’s software revenue grew by 10% to $7.9 billion, driven by demand for AI technology, while its consulting division saw a 2% revenue decline to $5.2 billion. CEO Arvind Krishna highlighted double-digit software revenue growth and strong performance from Red Hat, emphasizing IBM’s role in AI transformation for global clients.

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