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IBM said its fourth-quarter revenue was $16.69 billion compared with $16.70 billion a year earlier.
Photo:
David Paul Morris/Bloomberg News
International Business Machines Corp. on Wednesday posted flat sales after a strong U.S. dollar hurt its reported revenue by more than $1 billion.
The information-technology company said exchange rates would improve in its favor in 2023.
“We saw accelerating demand as we exited the year,” Chief Financial Officer
Jim Kavanaugh
said in an interview.
posted net income of $2.71 billion, or $2.96 a share, for the fourth quarter ended Dec. 31, compared with $2.33 billion, or $2.57 a share, a year earlier. Adjusted earnings were $3.60 a share, slightly above analysts’ estimates of $3.59 a share.
Revenue edged down to $16.69 billion from $16.70 billion a year earlier. Analysts polled by FactSet expected $16.15 billion.
Revenue for several of the Armonk, N.Y.-based company’s segments grew compared with the prior-year period. Software gained 2.8% to $7.3 billion; consulting added 0.5% to $4.8 billion; and infrastructure rose 1.6% to $4.5 billion. IBM’s financing segment slid 0.4% to $200 million from a year earlier.
Technology companies at large have been affected by a slowdown in spending as concerns about the economy and a potential recession linger, which has resulted in a wave of recent layoffs.
Microsoft Corp.
, which also announced plans to eliminate jobs, on Tuesday recorded its slowest sales growth in more than six years in its latest quarter as demand for its software and cloud services cooled.
IBM said hybrid cloud revenue in 2022 grew 11% to $22.4 billion.
IBM forecast adjusted revenue growth consistent with its mid-single digit model and about $10.5 billion in consolidated free cash flow for full-year 2023.
Write to Denny Jacob at denny.jacob@wsj.com
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