International Business Machines Full Year 2024 Earnings: EPS Misses Expectations

International Business Machines (NYSE:IBM) Full Year 2024 Results

Key Financial Results

• Revenue: US$62.8b (up 1.4% from FY 2023).
• Net income: US$6.02b (down 20% from FY 2023).
• Profit margin: 9.6% (down from 12% in FY 2023).
• EPS: US$6.53 (down from US$8.25 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

International Business Machines EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 11%.

The primary driver behind last 12 months revenue was the Software segment contributing a total revenue of US$27.1b (43% of total revenue). The largest operating expense was General & Administrative costs, amounting to US$23.1b (78% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of US$92.0m. Explore how IBM's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the IT industry in the US.

Performance of the American IT industry.

The company's shares are up 14% from a week ago.

Risk Analysis

You should learn about the 3 warning signs we've spotted with International Business Machines.

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