Why Is IBM (IBM) Down 2% Since Last Earnings Report?

Core Insights - IBM reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding estimates, driven by solid demand for hybrid cloud and AI solutions [2][3] Financial Performance - Net income for Q4 2024 was $2.91 billion or$3.09 per share, down from $3.29 billion or$3.55 per share in the previous year due to high operating expenses [4] - For the full year 2024, net income was $6.02 billion or$6.43 per share, compared to $7.5 billion or$8.14 per share in 2023 [5] - Quarterly total revenues increased to $17.55 billion from$17.38 billion, with a 2% year-over-year increase on a constant currency basis [6] Segment Performance - Software segment revenues rose to $7.92 billion from$7.18 billion, with notable growth in Red Hat (up 17%), Automation (16%), and Data & AI (5%) [8] - Consulting segment revenues decreased to $5.17 billion from$5.28 billion, missing estimates due to clients prioritizing spending [9] - Infrastructure segment revenues fell to $4.26 billion from$4.6 billion, reflecting lower demand and higher investments in AI and hybrid cloud [10] Cash Flow & Liquidity - IBM generated $4.33 billion in cash from operations during the quarter, with free cash flow at$6.16 billion, up from $6.09 billion in the prior year [12] Outlook - For 2025, IBM expects revenue growth of at least 5$13.5 billion [13]