Strong results power IBM

International Business Machines is one of the world’s largest technology companies, selling a range of hardware, software and services in such areas as cloud computing, artificial intelligence and blockchain technology.  

It beat expectations in its latest quarter.

Here’s an update:

IBM’s shares (NYSE:IBM) are up 14.4% year-to-date at the current price of US$247 compared with a 5% decline in the S&P 500 index.

 IBM’s performance performance was driven by robust demand for its software as customers ramped up spending on artificial intelligence applications.

Fourth-quarter revenue increased 1% year-over-year to $17.6 billion. Adjusted earnings per share (EPS) of $3.92, a 1% increase, beating expectations.

The software segment recorded its biggest revenue jump in five years, as customers  focused spending on cloud infrastructure and data-intensive generative artificial intelligence technology.

Like Open AI, Microsoft and Google, IBM markets its own family of AI models called Granite. It made them open-source in May, which means anyone can use and adapt them, unlike Microsoft or Open AI who charge for access to their models. IBM’s approach is in line with DeepSeek, which has made its AI assistant free.

IBM forecasts 5% revenue growth in 2025, compared with 3% in 2024.

Dividend: IBM has increased its dividend for 29 years in a row. The quarterly payment rose 6% to $1.67 last April. The stock yields 2.7%. 

This article appeared in a recent issue of the Internet Wealth Builder.  For information on how to reprint this article please view this page.