IBM tops Q4 forecasts powered by software growth; cuts 1.5% workforce

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Investing.com — IBM reported Wednesday fourth-quarter earnings that beat analysts’ forecasts, driven by strong performance in software and the company announced job cuts following in the footsteps of recent tech peers as economic growth slows. 

International Business Machines (NYSE:IBM) was about 0.4% lower in after-hours trade following the report.

IBM announced earnings per share of $3.6 on revenue of $16.70 billion. Analysts polled by Investing.com anticipated EPS of $3.58 on revenue of $16.13B.

The company’s software business, which includes transaction processing and hybrid platform & solutions, reported revenues of $7.3B, up 2.8%.

Hybrid platform & solutions led the growth in software, underpinned by a 10% revenue growth in Red Hat. 

For fiscal 2023, the company guided revenue growth at constant currency to be in the mid-single digits, with full-year free cash flow expected to be about $10.5B, up $1B from the prior year.

The company said it would cut 1.5% of its workforce, or about 3,900 jobs, resulting in a $300 million cost.

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