How is IBM doing financially? (2024)

How is IBM doing financially?

We estimate that IBM's revenue will come in at about $17.3 billion for the quarter, roughly in line with the consensus estimates and about 3% ahead of last year. We estimate that earnings will stand at close to $3.76 per share, roughly in line with the consensus.

Is IBM financially stable?

Change is hard, but some companies excel at it

But the company's recent financial results, including an 8% year-over-year increase in its consulting backlog, hints that 2024 could be another solid year for this technology giant.

Is IBM still doing well?

IBM is one of a handful of stocks that have increased their value in each of the last 3 years, but that still wasn't enough for it to consistently beat the market. Returns for the stock were 6% in 2021, 5% in 2022, and 16% in 2023.

What is the financial situation of IBM?

IBM's free cash flow was $11.2 billion, up $1.9 billion year to year. IBM ended the fourth quarter with $13.5 billion of cash and marketable securities, up $4.6 billion from year-end 2022. Debt, including IBM Financing debt of $11.9 billion, totaled $56.5 billion, up $5.6 billion since the end of 2022.

Is IBM making money?

For the year, IBM generated $61.9 billion in revenue, up 3% at constant currency, and $11.2 billion of free cash flow, up $1.9 billion year-over-year. We experienced growing demand for our new watsonx platform, marked by thousands of client interactions.

Does IBM have a future?

IBM has prioritized capitalizing on the growth of the worldwide hybrid cloud computing market. The company's new business model is monetizing every aspect of what customers need once they adopt an IBM cloud or AI computing platform. IBM's cash-flow growth is much greater than its overall sales growth.

Is there a future for IBM?

IBM's revenue rose 6% in 2022 and 2% in 2023, and analysts expect 3% growth in 2024. Its adjusted EPS grew 15% in 2022 and 5% in 2023, and is expected to rise 5% in 2024. Those growth rates indicate IBM's turnaround strategies are paying off and turning it into a reliable blue-chip tech stock again.

What was the downfall of IBM?

IBM's machines were of high quality, but that meant a higher price. Compared to their rivals, IBM's computers were expensive, and the profits were minimal. As a result of all these factors, IBM's share of the PC market declined from an impressive 80 percent in 1982 to a distressing 20 percent by 1992.

Can IBM make a comeback?

Arvind Krishna, IBM chairman and chief executive, said he expects a revenue growth in the mid-single digits for 2024, as well as generating $12 billion in free cash flow.

Is IBM making a comeback?

IBM is making a comeback. Although many observers had counted the company out — “It's a dinosaur, an implosion, a wreck,” various commentators said — its revival was probable, even predictable, because cycles of decline and revitalization have been the company's pattern through many decades.

Does IBM have a lot of debt?

Total debt on the balance sheet as of December 2023 : $59.93 B. According to IBM's latest financial reports the company's total debt is $59.93 B. A company's total debt is the sum of all current and non-current debts.

What problems are IBM facing?

Increasing transportation cost. Poor utilization of resources, such as labor, facilities, equipments, locations, and so forth. Servicing new customers and fulfilling each of their unique compliance demands.

Why did IBM go out of business?

There were a number of factors that contributed to IBM's decline, including: A failure to adapt to the changing market, as personal computers became more popular and IBM's mainframes became less relevant.

Is IBM good or bad company?

Is IBM a good company to work for? IBM has an overall rating of 4.1 out of 5, based on over 1,13,774 reviews left anonymously by employees. 83% of employees would recommend working at IBM to a friend and 73% have a positive outlook for the business. This rating has decreased by 1% over the last 12 months.

Who are IBM's biggest clients?

Are IBM employees happy?

Company Culture at IBM

The employee experience below at IBM, compared to a typical company. 72% of employees at IBM say it is a great place to work compared to 57% of employees at a typical U.S.-based company.

Is IBM laying off employees?

According to news reports, this is not the first time that IBM is laying off staff. In January 2023, it had announced that it would be slashing close to 4,000 jobs. The tech industry is seeing a massive shake-up since the past one year.

What is the long-term outlook for IBM?

IBM's revenue rose 6% in 2022 and 2% in 2023, and analysts expect 3% growth in 2024. Its adjusted EPS grew 15% in 2022 and 5% in 2023, and is expected to rise 5% in 2024. Those growth rates indicate IBM's turnaround strategies are paying off and turning it into a reliable blue-chip tech stock again.

What is the prediction for IBM in the next 5 years?

According to the latest long-term forecast, IBM price will hit $200 by the end of 2024 and then $250 by the middle of 2026. IBM will rise to $300 within the year of 2028, $350 in 2029, $400 in 2032 and $450 in 2035.

Is IBM worth investing in?

The AI market is expected to reach $305.9 billion this year, up from $241.8 billion in 2023, and is forecasted to grow to $738.8 billion by 2030. This serves as a multiyear tailwind for Big Blue. All of these factors combine to make IBM stock an attractive long-term investment.

Could IBM become the next Microsoft?

Therefore, I think it's premature to call IBM the next Microsoft. A few green shoots are appearing, but IBM is still trying to carve out a defensible niche with its newest cloud and AI services, while Microsoft remains a clear leader in both markets.

Why is IBM stock doing so well?

Here's Why. Shares of International Business Machines (IBM) are trading at levels not seen in more than a decade. A key factor behind the recent surge for IBM stock will sound familiar to investors: artificial intelligence.

What was IBM's big mistake?

IBM had many regulation issues back then with their monopolistic position. They decided not to have exclusivity over the operating system. That decision would prove to be a costly mistake, maybe the biggest ever made.

What is happening with IBM?

IBM is announcing that it has signed a definitive agreement to acquire Modern Systems and other application modernization capabilities from Advanced, bringing a combination of talent, tools... “IBM applauds EU negotiators for reaching a provisional agreement on the world's first comprehensive AI legislation.

What is IBM accused of?

Xinuos sued International Business Machines Corp in Virgin Islands federal court on Wednesday, alleging IBM stole source code related to its server operating system software and used it to improve its competing product and corner the market.