IBM Q4 2024 Earnings Report
Key Takeaways
IBM's Q4 2024 results showed revenue of $17.6 billion, up 1 percent, with Software revenue up 10 percent. The company's generative AI book of business reached over $5 billion inception-to-date, with a strong free cash flow of $6.2 billion for the quarter. IBM expects revenue growth of at least 5 percent and free cash flow of about $13.5 billion for 2025.
IBM's Q4 revenue reached $17.6 billion, a 1% increase year-over-year.
Software revenue increased by 10%, driven by Red Hat's acceleration.
Generative AI book of business exceeded $5 billion inception-to-date, with nearly $2 billion growth in Q4.
Free cash flow for the quarter was $6.2 billion, contributing to a full-year free cash flow of $12.7 billion.
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IBM Revenue by Segment
Forward Guidance
IBM expects full-year constant currency revenue growth of at least 5 percent and free cash flow of about $13.5 billion for the full year 2025.
Positive Outlook
- The company expects full-year constant currency revenue growth of at least 5 percent.
- IBM anticipates approximately $13.5 billion in free cash flow for the full year.
Challenges Ahead
- Currency is expected to be about a two-point headwind to growth for the year at current foreign exchange rates.