📈 IBM surprises the market: Shares rise on strong results, AI expansion! 🤖💰
IBM $IBM also known as Pioneer of computer systems, released fourth-quarter results on Wednesday that beat Wall Streetexpectations and the stock responded by rising more than 10 %. 🚀
📊 Key financial metrics:
Earnings per share: $3.93 (vs. $3.78 expected)
Revenue: $17.6 billion (vs. $17.54 billion expected)
Full-year revenue growth: +1% to $62.8 billion
Free cash flow in 2025: USD 13.5 billion estimate
🚀 IBM changes strategy: Software and AI divisions in a major role
IBM continues to shift from traditional infrastructure to innovative technologies, and its results reflect this:
✅ Software division grew by 10 % driven by growing interest in AI and cloud solutions ☁️
✅ Generative AI: Jumped by 67 % to $5 billion in bookings 💡
✅ Red Hat thrives: further growth acceleration due to high demand for hybrid cloud solutions
On the other hand, the consulting division weakened by 2 %, suggesting a slowdown in some corporate IT investments. 📉
⚛️ IBM and the quantum future: closer to a commercial revolution?
One of IBM'sbiggest visions is quantum technology, which has the potential to transform industry, finance and research. IBM is one of the leaders in this segment and is investing billions in the development of quantum computers.
🔬 IBM Quantum System Two - A new quantum system linking multiple quantum processors, paving the way for practical applications of quantum computing.
🌍 The company is entering into strategic partnerships with companies and universities to accelerate the development of quantum algorithms for real-world applications.
IBM believes quantum computing will bring breakthroughs in pharmaceuticals, supply chain optimization, financial models and cybersecurity. Although we are still not at the stage of full commercial exploitation, IBM wants to be the first to bring this change to market.
IBM is successfully transforming itself from an infrastructure services company to an innovative player in AI and quantum technologies.
The company maintains strong free cash flow - a key indicator of stability.
The growth of the software business shows that IBM can compete with tech giants like Microsoft a Google.
I can recommend a very hilarious post about quantum technologies and major players by Rostislav Myšička!
💡 Will IBM be a key player in quantum technologies and AI?
As for the quantum technology, IBM is doing well, but the question is whether the company can use it well and whether it will bring any money to the company.
Great results. The sociability really seems to be up quite a bit now though and I don't know how long it can be sustained. I'd be careful.
The company is doing quite well right now and the stock has risen a lot recently. The price is very high for a buy right now. In my opinion, $GOOG might be more interesting right now.
I'll probably repeat myself, but I don't understand how someone can pay the same price for this as for Google. Almost no top/bottom line growth, low margins, even after the spin off they have the most money from these legacy services/SW and management is trying to sell it to investors as a quant/AI/cloud company where it makes them a marginal profit.