The software and services company revealed that it had an adjusted EPS of $3.35 compared with the $3.30 expected by analysts. Revenue came in at $16.70 billion, significantly higher than the $15.90 billion initially forecasted.
Moreover, in the fourth quarter, the company's net income surged 72% to $2.33 billion.
In the quarter, IBM turned the management infrastructure services business into Kyndryl – which began trading as a public company on the NYSE on November 4. Despite the separation, part of the continuing operation's growth came from sales to Kyndryl. The new company generated $4.6 billion in revenue, having more than 4,000 customers and approx. 90,000 employees.
Besides the Kyndryl transaction, IBM revealed the acquisition of SXiQ – an Australian cloud consulting company – and a consulting unit specialized in Adobe implementations. Also, it will work alongside Samsung to a vertical semiconductor transistor architecture.
For the future, IBM CEO Arvind Krishna reiterated that the company expects a mid-single-digit growth goal and the free cash flow to come in at $10 billion - $10.5 billion.
After the news hit the wires, IBM's share price went up 7%.
Sources: cnbc.com, marketwatch.com