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International Business Machines (IBM)
NYSE:IBM
Earnings Data
Report Date
Apr 23, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
1.42Last Year’s EPS
1.68Same Quarter Last Year
Moderate Buy
Based on 15 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Jan 29, 2025
|% Change Since: 8.41%
|Next Earnings Date:Apr 23, 2025
Earnings Call Sentiment|Positive
The earnings call reflected strong performance in software and free cash flow, driven by successful initiatives in AI and mainframe programs. However, there were challenges in consulting and infrastructure segments, along with broader macroeconomic concerns. The overall sentiment is optimistic with a positive outlook for 2025.Company Guidance
During IBM's fourth quarter 2024 earnings call, the company highlighted its strong financial performance and provided detailed guidance for 2025. IBM reported a revenue growth of 3% for 2024 and generated $12.7 billion in free cash flow, marking its highest level in many years. The software segment saw a 9% growth, led by Red Hat with a 17% increase in the fourth quarter. Looking ahead to 2025, IBM expects revenue growth to exceed 5%, driven by a mix of software and infrastructure growth, with free cash flow projected at approximately $13.5 billion. The company anticipates software revenue to approach double-digit growth, consulting to achieve low-single-digit growth, and infrastructure to contribute about a point to overall revenue growth. IBM's technology initiatives, such as advancements in generative AI and strategic partnerships, are expected to bolster future performance.Strong Revenue Growth and Cash Flow
IBM delivered revenue growth of 3% and $12.7 billion of free cash flow in 2024, marking the highest level of cash flow generation in many years. Software grew by 9% in 2024, surpassing the mid-single-digit target.
Record Performance in Software and Red Hat
Software saw an 11% revenue growth in the fourth quarter with Red Hat growing 17%. IBM's AI book of business reached over $5 billion, with significant contributions from Software and Consulting.
Successful Mainframe Program
IBM's z16 mainframe program was the most successful in history, with a 122% program-to-program growth and a 30% increase in installed MIPS.
Strong Free Cash Flow and Financial Flexibility
IBM generated $12.7 billion of free cash flow for the full year, marking a 14% growth. The company ended the year with $14.8 billion in cash, enhancing their financial flexibility.
Positive Outlook for 2025
IBM expects revenue growth to increase to 5% plus in 2025, with about $13.5 billion in free cash flow. Software revenue is expected to grow approaching double-digits.
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IBM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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IBM Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Jan 29, 2025 | $227.12 | $256.56 | +12.96% |
| Oct 23, 2024 | $229.40 | $215.25 | -6.17% |
| Jul 24, 2024 | $179.80 | $187.58 | +4.33% |
| Apr 24, 2024 | $178.11 | $163.41 | -8.25% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does International Business Machines (IBM) report earnings?
International Business Machines (IBM) is schdueled to report earning on Apr 23, 2025, TBA Not Confirmed.
What is International Business Machines (IBM) earnings time?
International Business Machines (IBM) earnings time is at Apr 23, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is IBM EPS forecast?
IBM EPS forecast for the fiscal quarter 2025 (Q1) is 1.42.
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