In the pre-market hours, International Business Machines Corporation (NYSE: IBM) witnessed a notable 7.51% upswing, reaching $187.00. This signals an upward trajectory for the company’s stocks in the US market. The surge follows the public release of the company’s financial reports immediately after the regular trading session concluded.
IBM disclosed its financial outcomes for Q4 2023 yesterday, manifesting revenue expansion across all business segments. The growth is attributed to the continued adoption of its artificial intelligence (AI) and hybrid cloud solutions. Notably, the company experienced a nearly twofold increase in the business volume for watsonx and generative AI from Q3 to Q4, reflecting a substantial surge in customer demand for AI.
The annual sales surge met predictions, and IBM surpassed its target for free cash flow. Anticipating a revenue performance in 2024 consistent with its mid-single digit model, IBM aims for a free cash flow of approximately $12 billion, guided by its robust portfolio and a history of innovative accomplishments. Noteworthy, software revenue witnessed a 3% uptick, while IBM reported a 4% quarterly revenue gain, totaling $17.4 billion.
Infrastructure revenue increased by 3%, while consulting revenue showed strong growth of 6%. IBM recorded $61.9 billion in sales for the whole fiscal year, a 2% rise. Growth was also evident in net cash from operating operations, which increased by $3.5 billion to $13.9 billion. To achieve $11.2 billion, free cash flow increased by $1.9 billion.
In a separate development, IBM unveiled AI Stories with IBM watsonx—a generative AI solution collaboratively created with the Recording Academy. This initiative aims to generate and amplify editorial content surrounding GRAMMY nominees before and during the 66th Annual GRAMMY Awards.
The AI Stories, powered by IBM’s AI and data platform watsonx, will enable the Recording Academy’s editorial team to enhance its coverage of GRAMMY-nominated artists. This innovative approach promises to deliver a more personalized digital experience, fostering deeper connections between millions of music enthusiasts and the artists they admire, while also introducing them to new talents.
