IBM (New York Stock Exchange: IBM) shares rose nearly 1% in after-hours trading after the IT services giant reported better-than-expected fourth-quarter results and said it would cut its workforce by 1.5% amid a slowing economy.
armonk, new York-based IBM (IBM) earned $3.60 per share on earnings of $16.69 billion. This includes his 8% rise in constant currency with software-related revenues accounting for $7.29 billion.analyst consensus Be expected The company will earn $3.61 per share on earnings of $163.8 billion.
The company added $5.21 billion in free cash flow for the period.
In addition to the quarterly results, IBM (IBM) CFO James Kavanaugh said the company will cut about 1.5% of its 260,000 global workforce, or about 3,900 jobs, and will spend $300 million related to job cuts. said it would incur costs. Kavanaugh told Bloomberg that the cuts will focus on employees remaining after the Kindrill and Watson Health spinoffs.
Looking ahead, IBM (IBM) said it expects constant currency revenue growth to be in the mid-single digits for fiscal 2023. .
IBM (IBM) will hold a conference call at 5:00 pm ET to discuss the results.
Investment firm MoffettNathanson recently upgraded IBM (IBM), citing potential for growth in IT services this year despite, and possibly even due to, recession fears.