Group 1: Earnings Reports - Meta Platforms and Microsoft are among the big tech companies reporting earnings, alongside IBM and Wolfspeed [1] - IBM exceeded fourth-quarter earnings estimates, driven by increased customer investment in cloud infrastructure for AI technology, resulting in a stock price increase of 12.6% to a record high of $257.44 [2] - Wolfspeed reported a smaller-than-expected loss for the fiscal second quarter and surpassed revenue expectations, but faced four price-target cuts from analysts, with the stock down 0.6% at $5.97 [3] Group 2: Stock Performance and Analyst Reactions - IBM received nine price-target hikes, including an increase from BMO to $280 from $260, reflecting strong market confidence [2] - Wolfspeed's stock has struggled with overhead pressure at its 40-day moving average since November, showing an 81.8% year-over-year deficit [3] - Both companies are experiencing increased options trading volume, with IBM seeing 14 times its typical volume and Wolfspeed seeing double its usual volume [4]

Core Insights - IBM reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimate [1][2] - The company experienced healthy demand for hybrid cloud and AI solutions, achieving growth across its client-focused portfolio despite economic uncertainties [2] Financial Performance - GAAP net income for the quarter was $2.91 billion or $3.09 per share, down from $3.29 billion or $3.55 per share year-over-year due to high operating expenses [3] - Non-GAAP net income from continuing operations was $3.92 per share, slightly up from $3.87 in the prior-year quarter, beating the Zacks Consensus Estimate by 19 cents [3] - For 2024, net income was reported at $6.02 billion or $6.43 per share, compared to $7.5 billion or $8.14 per share in 2023 [4] Revenue Growth - Quarterly total revenues increased to $17.55 billion from $17.38 billion, driven by strong demand for hybrid cloud and AI, exceeding the consensus estimate of $17.51 billion [5] - On a constant currency basis, revenues were up 2% year-over-year [5] Segment Performance - Software segment revenues improved to $7.92 billion from $7.18 billion, with notable growth in Red Hat (up 17%), Automation (16%), and Data & AI (5%) [7] - Consulting segment revenues were $5.17 billion, down from $5.28 billion year-over-year, missing estimates due to clients prioritizing spending [8] - Infrastructure segment revenues decreased to $4.26 billion from $4.6 billion, reflecting lower demand and higher investments in AI and hybrid cloud [9] - Financing segment revenues declined to $170 million from $175 million year-over-year [10] Cash Flow and Liquidity - IBM generated $4.33 billion in cash from operations during the quarter, bringing total cash from operations for 2024 to $13.44 billion [11] - Free cash flow was $6.16 billion in the quarter, up from $6.09 billion in the prior-year period [11] - As of December 31, 2024, the company had $13.95 billion in cash and cash equivalents, with long-term debt at $49.88 billion [11] Future Outlook - For 2025, IBM expects revenues to grow at least 5% on a constant currency basis, driven by a strong portfolio mix and productivity initiatives [12]

Core Insights - IBM reported Q4 revenue of $17.6 billion and adjusted earnings of $3.92 per share, surpassing consensus estimates of $17.5 billion and $3.75 respectively, driven by strong demand for AI solutions and robust performance in its software business [1][3] - The stock surged over 8% following the results announcement, reflecting a 45% return since the beginning of 2024, outperforming the S&P 500 index which is up 27% [2][5] - IBM's software sales grew by 10%, while the infrastructure segment declined by 8%, consulting sales fell by 1.1%, and financing revenue decreased by 2.5% [3] Financial Performance - IBM's Q4 revenue showed a 1% year-over-year growth, with Data & AI solutions and Red Hat products leading the growth, with Red Hat products seeing a 16% year-over-year increase [3][4] - Adjusted operating margin increased by 50 basis points to 60.6%, contributing to earnings of $3.92 per share, which is a 1% year-over-year increase [5] - The company anticipates at least 5% top-line growth and $13.5 billion in free cash flows in 2025 [5] Market Position and Future Outlook - IBM is focusing on capitalizing on the rising demand for AI in the enterprise space, introducing Watsonx to help clients deploy customized AI models [4] - Despite the strong performance, IBM is considered fully valued at around $250, trading at 3.7x trailing revenues compared to its average P/S ratio of 2.2x over the last five years [7] - The company has consistently increased its stock value over the past four years, but has not consistently outperformed the market [5][7]

Core Insights - IBM shares increased nearly 8% in premarket trading following the release of fourth-quarter results that exceeded analysts' expectations, driven by a surge in its artificial intelligence (AI) business [2][4] - The company reported adjusted earnings per share (EPS) of $3.92, surpassing the consensus estimate of $3.79, and revenue of $17.55 billion, slightly above expectations [2][4] Financial Performance - IBM's fourth-quarter adjusted EPS was $3.92, exceeding the Visible Alpha consensus of $3.79 [2][4] - Revenue for the quarter was reported at $17.55 billion, marginally higher than analysts' expectations [2][4] AI Business Growth - The generative AI business has seen significant growth, with the total book of business now exceeding $5 billion, an increase of nearly $2 billion quarter over quarter [3][4] - CEO Arvind Krishna emphasized that IBM's AI products offer clients a consistent and scalable AI foundation based on open-source technology [3]

Core Insights - IBM has published its full-year CY24 earnings results, indicating that the company is on track to achieve its single-digit growth targets [1] Company Overview - IBM's focus remains on growth, with particular emphasis on technology sectors such as semiconductors, artificial intelligence, and cloud software [1] - The company is also involved in research across other sectors including MedTech, Defense Tech, and Renewable Energy [1] Analyst Background - The analysis is conducted by Uttam, a growth-oriented investment analyst with a decade of experience in the technology sector [1] - Uttam has previously led teams at major technology firms like Apple and Google, enhancing his expertise in the field [1]

Core Insights - Telefónica Tech and IBM have entered a collaboration agreement to develop security solutions addressing challenges posed by future quantum computers [1][6][9] - The partnership aims to integrate IBM's quantum-safe technology with Telefónica Tech's cybersecurity services to protect organizations from potential data vulnerabilities [6][10] Group 1: Quantum Computing and Security Challenges - Quantum computing presents opportunities for advanced calculations but also poses significant cybersecurity challenges as traditional encryption may become vulnerable [3][8] - Data may already be at risk of being harvested by cybercriminals for future decryption, even before cryptographically relevant quantum computers are available [3] Group 2: IBM's Quantum-Safe Technology - IBM has developed enterprise software focused on quantum safety, including IBM Guardium Quantum Safe, which helps organizations manage cryptography and improve security posture [4][5] - The technology includes tools for discovering cryptographic vulnerabilities and testing quantum-safe algorithm performance [5] Group 3: Implementation and Collaboration - The collaboration will focus on creating solutions that adhere to new quantum-safe cryptography standards defined by the U.S. National Institute of Standards and Technology (NIST) [7][10] - IBM's infrastructure has been deployed at Telefónica's headquarters in Madrid to support business development aimed at enhancing cyber resiliency against future quantum threats [9][12] Group 4: Future Directions - The agreement includes the establishment of a joint use case office to focus on communications encryption and adaptation to new secure algorithms [11] - Telefónica Tech will assist organizations in transitioning to new cryptographic standards to ensure resilience against cybersecurity risks posed by quantum computing [10]

For the quarter ended December 2024, IBM (IBM) reported revenue of $17.55 billion, up 1% over the same period last year. EPS came in at $3.92, compared to $3.87 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $17.56 billion, representing a surprise of -0.05%. The company delivered an EPS surprise of +5.09%, with the consensus EPS estimate being $3.73.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compa ...

IBM (IBM) came out with quarterly earnings of $3.92 per share, beating the Zacks Consensus Estimate of $3.73 per share. This compares to earnings of $3.87 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.09%. A quarter ago, it was expected that this technology and consulting company would post earnings of $2.27 per share when it actually produced earnings of $2.30, delivering a surprise of 1.32%.Over the last four quarters, t ...

Chairman, President and Chief Executive Officer of IBM Arvind Krishna attends the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, Jan. 22, 2025.IBM reported fourth-quarter earnings on Wednesday that topped Wall Street expectations for earnings and revenue.The shares rose 10% in extended trading. It's the largest rise in IBM's stock price since March 2020. Here's how the company did versus LSEG consensus expectations:Earnings per share: $3.92, adjusted, versus $3.75 expectedRevenue: $17 ...

Software Revenue Growth - Software revenue grew by 10% in Q4 2024, reaching $7.9 billion, with Red Hat leading the growth at 16%[14][8] - Full-year 2024 revenue was $62.8 billion, up 1% (3% at constant currency), with Software revenue up 8%[8][16] - Software segment revenue grew to $7.924 billion in Q4 2024, a 10.4% increase from $7.179 billion in Q4 2023[25] - Software segment revenue grew 10.4% Y/Y to $7.924 billion in Q4 2024, with a segment profit margin of 39.2%[36] - Full-year 2024 software revenue increased 8.3% to $27.085 billion, with a segment profit margin of 32.1%[37] Generative AI Business - The company's generative AI book of business reached over $5 billion, up nearly $2 billion quarter over quarter[2] Free Cash Flow and Financial Performance - Free cash flow for 2024 was $12.7 billion, exceeding expectations and up $1.5 billion year over year[9][12] - The company expects full-year 2025 revenue growth of at least 5% and free cash flow of about $13.5 billion[2][18] - Net cash from operating activities in 2024 was $13.4 billion, down $0.5 billion year over year[12] - Net cash provided by operating activities was $4.330 billion in Q4 2024, slightly down from $4.463 billion in Q4 2023[30] - Net Cash from Operations per GAAP for 2024 was $13.445 billion, with Free Cash Flow of $12.749 billion[52] Gross Profit Margin - Q4 2024 gross profit margin was 59.5% (GAAP) and 60.6% (Non-GAAP), up 40 and 50 basis points respectively[6][8] - Gross profit margin improved to 59.5% in Q4 2024, up from 59.1% in Q4 2023[25] - Gross Profit for 2024 was $35.551 billion, with a Gross Profit Margin of 56.7%, increasing to $36.275 billion and 57.8% after adjustments[46] - Gross Profit for 2023 was $34.3 billion, with a Gross Profit Margin of 55.4%, increasing to $34.931 billion and 56.5% after adjustments[47] Consulting and Infrastructure Revenue - Consulting revenue declined by 2% in Q4 2024, while Infrastructure revenue dropped by 8%[8][14] - Consulting segment revenue declined 2.0% Y/Y to $5.175 billion in Q4 2024, with a segment profit margin of 11.7%[36] - Infrastructure segment revenue decreased 7.6% Y/Y to $4.256 billion in Q4 2024, with a segment profit margin of 25.0%[36] - Full-year 2024 consulting revenue declined 0.9% to $20.692 billion, with a segment profit margin of 9.9%[37] Cash and Marketable Securities - IBM ended Q4 2024 with $14.8 billion in cash, restricted cash, and marketable securities, up $1.3 billion from 2023[13] - Cash and cash equivalents increased to $13.947 billion at the end of 2024, up from $13.068 billion at the end of 2023[28] Total Revenue and Assets - Total revenue for Q4 2024 increased to $17.553 billion, up 1% from $17.381 billion in Q4 2023[25] - Total assets grew to $137.175 billion at the end of 2024, compared to $135.241 billion at the end of 2023[28] Net Income and Earnings - Net income from operations decreased to $2.915 billion in Q4 2024, down from $3.288 billion in Q4 2023[30] - Net income for Q4 2024 was $2.9 billion, a decrease of $0.4 billion (12.1%) compared to Q4 2023[33] - Full-year 2024 net income was $6.0 billion, down $1.5 billion (20.0%) from 2023[33] - Income from Continuing Operations for 2024 was $6.015 billion, increasing to $9.684 billion after adjustments, with an Income Margin of 15.4%[46] - Income from Continuing Operations for 2023 was $7.514 billion, increasing to $8.87 billion after adjustments, with an Income Margin of 14.3%[47] Dividends and Shareholder Returns - The company returned $1.5 billion to shareholders in dividends during Q4 2024[11] - The company paid $1.546 billion in dividends in Q4 2024, up from $1.518 billion in Q4 2023[30] R&D Expenses - R&D expenses increased to $1.967 billion in Q4 2024, up 12.5% from $1.748 billion in Q4 2023[25] Pension Settlement Charges - Pension settlement charges impacted 2024 results with $2.7 billion in Q3 and $0.4 billion in Q4[26] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $5.6 billion, up $0.1 billion (1.8%) from Q4 2023[33] - Full-year 2024 adjusted EBITDA was $16.4 billion, an increase of $0.9 billion (5.8%) compared to 2023[33] - Adjusted EBITDA for 2024 was $16.4 billion, compared to $15.5 billion in 2023[54] Pre-tax Income and Earnings Per Share - Q4 2024 operating (non-GAAP) pre-tax income from continuing operations was $4.3 billion, up $0.1 billion (2.4%) from Q4 2023[33] - Pre-tax Income from Continuing Operations for 2024 was $5.797 billion, increasing to $11.207 billion after adjustments, with a Pre-tax Income Margin of 17.9%[46] - Pre-tax Income from Continuing Operations for 2023 was $8.69 billion, increasing to $10.311 billion after adjustments, with a Pre-tax Income Margin of 16.7%[47] - Diluted Earnings Per Share from Continuing Operations for 2024 was $6.42, increasing to $10.33 after adjustments[46] - Diluted Earnings Per Share from Continuing Operations for 2023 was $8.15, increasing to $9.62 after adjustments[47]