Investing.com — IBM (NYSE: IBM) Wednesday’s fourth-quarter earnings beat analyst expectations. This is driven by strong performance in software, which followed in the footsteps of recent tech companies by announcing job cuts as economic growth slowed.
International Business Machines (NYSE: IBM) fell about 0.4% in after-hours trading after the report.
IBM announced earnings per share of $3.6 on revenue of $16.7 billion. An analyst surveyed by Investing.com said he projected an EPS of $3.58 on revenue of $161.3 billion.
The company’s software business, which includes transaction processing and hybrid platforms and solutions, reported revenue of $7.3 billion, up 2.8%.
Hybrid platforms and solutions drove software growth, supported by 10% revenue growth for Red Hat.
For fiscal 2023, the company expects to deliver mid-single-digit revenue growth on a constant currency basis and full-year free cash flow to approximately $10.5 billion, an increase of $1.0 billion from the prior year.
The company said it would cut 1.5% of its workforce, or about 3,900 jobs, at a cost of $300 million.