IBM RELEASES FOURTH-QUARTER RESULTS
Double-digit Software revenue growth; Free cash flow well-exceeds full-year expectation

ARMONK, N.Y., January 29, 2025 . . . IBM (NYSE: IBM) today announced fourth-quarter 2024 earnings results.
“We closed the year with double-digit revenue growth in Software for the quarter, led by further acceleration in Red Hat. Clients globally continue to turn to IBM to transform with AI. Our generative AI book of business now stands at more than $5 billion inception-to-date, up nearly $2 billion quarter over quarter," said Arvind Krishna, IBM chairman, president and chief executive officer. "Three years ago, we laid out a vision for a faster-growing, more-profitable IBM. I'm proud of the work the IBM team has done to meet or exceed our commitments. With our focused strategy, enhanced portfolio, and culture of innovation, we're well-positioned for 2025 and beyond and expect revenue growth of at least five percent and free cash flow of about $13.5 billion this year."
Fourth-Quarter Highlights
•Revenue
–Revenue of $17.6 billion, up 1 percent, up 2 percent at constant currency
–Software revenue up 10 percent, up 11 percent at constant currency
–Consulting revenue down 2 percent, down 1 percent at constant currency
–Infrastructure revenue down 8 percent, down 6 percent at constant currency
•Profit
–Gross Profit Margin: GAAP: 59.5 percent, up 40 basis points; Operating (Non-GAAP): 60.6 percent, up 50 basis points
Full-Year Highlights
•Revenue
–Revenue of $62.8 billion, up 1 percent, up 3 percent at constant currency
–Software revenue up 8 percent, up 9 percent at constant currency
–Consulting revenue down 1 percent, up 1 percent at constant currency
–Infrastructure revenue down 4 percent, down 3 percent at constant currency
•Profit
–Gross Profit Margin: GAAP: 56.7 percent, up 120 basis points; Operating (Non-GAAP): 57.8 percent, up 130 basis points
•Cash Flow
–Net cash from operating activities of $13.4 billion; free cash flow of $12.7 billion