IBM shares rise after earnings top estimates in ‘uncertain, volatile’ economy
Summary
IBM shares rose as much as 6% in extended trading Wednesday after the tech and services provider announced fourth-quarter results that exceeded Wall Streets expectations. The company confronted "a very challenging, uncertain, volatile macroeconomic environment," Chief Financial Officer James Kavanaugh said in an interview with CNBC. The distributed infrastructure category in particular, containing servers with IBMs Power chips, accelerated to 8% growth, compared to a decline of 4% in the third quarter. During the quarter, IBM introduced a $500 million venture fund targeting enterprise artificial intelligence startups, and it announced plans to pay 2.13 billion euros, or $2.32 billion at the current exchange rate, for StreamSets and webMethods, two businesses majority-owned by Software AG. With respect to guidance, IBM said it sees $12 billion in 2024 free cash flow and revenue growth in the mid-single digits at constant currency.
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