IBM's quarterly revenue surpassed analysts' expectations due to higher growth in the company's software and infrastructure segments.
The total revenue was reported at $16.69 billion for Q4 2022 flat compared to what analysts had expected to decline for the first time in two years.
The software segment posted $7.29 billion, representing nearly 3% growth and above the consensus among analysts. Meanwhile, the infrastructure segment generated $4.48 billion, up almost 2% and more than the consensus. IBM outperformed its tech peers in 2022, rising 11% and being one of only two U.S. tech companies valued at $50 billion or more to notch gains.
Despite Microsoft highlighting a slowdown in new business in December, IBM CEO Arvind Krishna stated that he did not see the same pattern and that clients still wanted to pursue new development. IBM also plans to cut around 3,900 jobs, representing 1.5% of its workforce.
The company called for 2023 revenue growth in constant currency and around $10.5 billion in free cash flow. IBM also revealed its plan to invest $20 billion in New York's Hudson Valley area over a decade and announced a next-generation quantum computer featuring 433-qubits and the acquisition of Octo.