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IBM technology company based in New York reported its quarterly revenue on Wednesday, Jan. 25. The company revealed it was able to top analyst’s estimates as its infrastructure and software units have shown higher-than-expected growth.
IBM’s senior vice president and chief financial officer, James Kavanaugh, said that "IBM's revenue growth and operating profit in 2022 demonstrate the strength and multiplier effect of our platform-centric approach to hybrid cloud and AI." Adding that their “client-focused portfolio and strong recurring revenue stream position IBM well for continued growth, solid cash generation and returning value to shareholders through dividends."
Moreover, in a press release, the company’s chairman and chief executive officer, Arvind Krishna, further stated, "Our solid fourth-quarter performance capped a year in which we grew revenue above our mid-single digit model.”
The CEO added, “Clients in all geographies increasingly embraced our hybrid cloud and AI solutions as technology remains a differentiating force in today's business environment."
While Krishna also said that they are now looking for full-year revenue growth this year, analysts reportedly expected IBM’s revenue to decline. Then again, the company may do well and crush expectations.
In any case, IBM may have reported growth in the company, but CNBC reported it is also planning to cut about 3,900 jobs. This is said to make the 1.5% of the company’s total workforce.
IBM’s software unit showed a three percent growth while its infrastructure segment generated $4.48 billion in earnings which indicates an almost two percent increase. However, IBM’s CFO said that it would be wise to expect it to be on the low end of its model for mid-single-digit profit growth.
Finally, with the figures and its latest achievements, things seem to be going smoothly for the company, but the layoffs were said to have been confirmed by CNBC. There are no other details regarding the layoffs at this time.
