IBM(US:IBM) Prnewswire·2025-01-29 21:08Core Insights - IBM reported double-digit revenue growth in its Software segment for Q4 2024, driven by strong performance in Red Hat and a growing generative AI business valued at over $5 billion [2][10] - The company anticipates at least 5% revenue growth and approximately $13.5 billion in free cash flow for the full year 2025 [2][19] Financial Performance - Q4 2024 revenue reached $17.6 billion, a 1% increase year-over-year, with Software revenue up 10% [10][12] - The gross profit margin for Q4 2024 was 59.5%, an increase of 40 basis points from the previous year [10][12] - For the full year 2024, total revenue was $62.8 billion, up 1% year-over-year, with a gross profit margin of 56.7% [10][12] Segment Results - Software segment revenue for Q4 2024 was $7.9 billion, up 10.4% year-over-year, with Red Hat growing 16% [11][29] - Consulting revenue decreased by 2% to $5.2 billion, while Infrastructure revenue fell by 7.6% to $4.3 billion [11][29] - For the full year 2024, Software revenue totaled $27.1 billion, an 8.3% increase, while Consulting revenue was $20.7 billion, down 0.9% [11][33] Cash Flow and Balance Sheet - IBM generated $4.3 billion in net cash from operating activities in Q4 2024, with free cash flow of $6.2 billion [7][8] - The company ended Q4 2024 with $14.8 billion in cash and marketable securities, and total debt decreased to $55.0 billion [9][12] - For the full year, free cash flow was $12.7 billion, up $1.5 billion year-over-year [8][10] Future Outlook - IBM expects continued growth in its Software segment and a focus on AI-driven solutions, positioning itself for a robust 2025 [2][19] - The company anticipates a currency headwind of about two percentage points to revenue growth for the year [19]