Almost half of the IBM business now falls on – the company is betting on AI and Open Source

Investors supported the IBM development strategy regarding the deployment of AI technologies, which was expressed in the growth of shares after publishing a report for the IV quarter and 2024 financial year, which ended on December 31, The Wall Street Journal writes. The main indicators of IBM exceeded last year’s results and forecasts of Wall Street also played a role.

Earlier, IBM announced that she accepted the approach of open innovations to AI, opening the source code of her decisions. In May, the company released the open models of the Granite Foundation, and before that she, together with NASA, made an open basic II model to analyze satellite data and laid it on a Huging face. IBM financial director James Kavanaugh noted that the Open Source strategy makes the technology more economically effective and simpler in scaling. This corresponds to the approach of the Chinese startup Deepseek, the AI ​​models of which caused shock in the market.

The total revenue of the IBM for the IV quarter increased by 1% to $ 17.6 billion, which corresponds to the expectations of analysts interviewed by LSEG. At the same time, the adjusted profit for the divorced share (Non-Gaap) amounted to $ 3.92 with the forecast of analysts $ 3.75. The net profit (GAAP) for the quarter amounted to $ 2.92 billion or $ 3.09 per divorced share, while a year earlier these indicators were $ 3.29 billion and $ 3.55 per share.

Source of images: IBM

The ARE unit increased the revenue in an annual calculus by 10% to $ 7.92 billion, which was facilitated by Red Hat revenue by 16%. The Openshift platform provided almost half of this volume. The revenue of the automation unit increased by 15%, data processing units and AI – by 4%. The company noted that the volume of business in the field of generative AI is now more than $ 5 billion, which is almost $ 2 billion more than a quarter earlier. IBM CEO Arvind Krishna said that the IBM business with an annual turnover of more than $ 15 billion and two -digit growth now accounts for the software.

Sales of the IBM consulting unit are reduced by the fourth quarter in a row, which once by 2% to $ 5.18 billion. Clients continue to redirect funds from traditional consulting projects to AI -oriented projects, Cavanah said, noting that this is most likely temporarily. “We have completed a year with the highest recorded number of orders per quarter in history, and growth by 23%,” he said. “We still deal with a very dynamic environment around how customers put priorities in expenses.” About 80% of the orders comes from the consulting unit, and the rest is from the software unit.

The revenue of the infrastructure unit decreased in the reporting quarter by 7.6% to $ 4.26 billion, which reflects the approaching end of the three -year life cycle Z16, the sales of which fell by 21%. It is expected that the next generation Z17 will be released in the middle of the year, which will ensure the growth of income in the second half of 2025.

For the entire 2024 financial year, IBM revenue amounted to $ 62.8 billion, exceeding the 2023 financial year by 1%. The unit increased the revenue by 8%, and in a consulting unit this figure decreased by 1%. In the infrastructure unit, the revenue fell more – by 4%.

In 2025, IBM expects an increase in revenue by at least 5%. After the publication of the financial report of the company’s shares grew at 9%off -off tenders, the Siliconangle resource said. Over the past 12 months, the price of an IBM shares has increased by 22%. According to The Register, the company saved $ 3.5 billion in operating expenses last year and intends to save the same amount in 2025, which indirectly indicates a new wave of dismissal. In 2024 there were at least two of them. The company has not updated information about the size of the state for more than a year.