IBM revenue rises 4% amid AI demand

IBM reported its fourth-quarter earnings with revenue rising 4%, driven in part by demand for its AI products and services as well as hybrid cloud. The computing giant also said free cash flow will improve this year.

"Despite the uncertain macro environment, IBM delivered impressive earnings as well as solid guidance as it continues to make progress on its massive multiyear restructuring," said Jesse Cohen, senior analyst at Investing.com.

"IBM is poised to continue to benefit from its turnaround efforts, while taking advantage of strong demand for its hybrid cloud offerings, which will help power future earnings growth and allow it to focus on increasing shareholder returns," Cohen continued. "The IT giant’s solid numbers and outlook set an encouraging tone for enterprise software and tech companies reporting next week."

Under CEO Arvind Krishna, the more than 111-years-old company has repositioned itself to focus on software and consulting with a renewed focus on AI, capitalizing on a broader push for its integration across industries.

The Big Blue's generative AI book of business, comprising actual sales and bookings from various offerings, roughly doubled sequentially in the fourth quarter, CEO Arvind Krishna said.