International Business Machines Corp (NYSE:IBM) shares moved more than 5% higher in afterhours trade after the hardware and software provider reported better-than-expected fourth quarter results and estimate-topping full-year revenue guidance.
For 4Q, the company reported a 4% year-over-year increase in revenue to $17.4 billion, ahead of estimates of $17.29 billion.
Earnings per share (EPS) of $3.87 also topped estimates of $3.78.
“In the fourth quarter, we grew revenue in all of our segments, driven by continued adoption of our hybrid cloud and AI offerings,” IBM CEO Arvind Krishna said.
“Based on the strength of our portfolio and demonstrated track record of innovation, for 2024 we expect revenue performance in line with our mid-single digit model and about $12 billion in free cash flow."
Mid-single-digit growth of 4% to 6% is ahead of Wall Street expectations of revenue growth of about 3% per LSEG data, and free cash flow is expected to grow by $800 million from $11.2 billion in 2023.
IBM shares were up 5.2% at US$182.95 shortly following the release of its earnings report.