The president, president and chief executive officer of IBM Arvind Krishna attended the 55th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, January 22, 2025.
Yves Herman | Reuters
IBM Leapped 12% on the back of a strong fourth trimester on the back which showed growth in artificial intelligence stimulating its software activity.
This decision has put the stock at the rate of its best day since July 20, 2000, when the shares broke out by 13%.
The company declared an adjusted profit of $ 3.92 per adjusted share over $ 17.55 billion in revenues after the bell on Wednesday. The analysts interviewed by LSEG expected that the profit expected $ 3.75 per share and income to reach $ 17.54 billion.
IBM declared a 1% increase in the whole income, while its software unit increased by 10% on one year on the other in the middle of an increasing demand for artificial intelligence and its operating system known as Red Hat Linux. CEO Arvind Krishna also said that the company had published $ 5 billion in reservations for its AI generator segment.
“We have closed the year with a two-digit income growth in the quarter, led by a new acceleration in Red Hat,” he said in a statement. “Customers around the world continue to turn to IBM to transform themselves with AI.”
JPMorgan analyst Brian Essex maintained his neutral note on IBM, but said the company remained “encouraged” by its software force and its growth trajectory. Goldman Sachs analyst James Schneider has reiterated his purchase rating, saying that the strength of the software should benefit the IBM recovery plan.
IBM shares have won 16% since the start of the year.
