IBM Maintains Guidance and Focus on AI Amid Q1 2025 Results

Published 4 hours agoIBM

IBM Maintains Guidance and Focus on AI Amid Q1 2025 Results

IBM announced its Q1 2025 earnings on April 23, aligning with analysts' forecasts of $1.42 EPS. Despite ongoing market challenges, the tech giant reaffirmed its full-year guidance, underscoring its strategic focus on expanding the hybrid cloud and AI sectors. This includes generating over $5 billion in revenue from generative AI.

The company recently completed a $6.4 billion acquisition of HashiCorp to bolster its cloud automation capabilities, which is now categorized under a new 'Automation' software segment. IBM also revealed plans for further acquisitions, including an Oracle consultancy and a database provider, aiming to enhance its strategic assets. According to Insider Monkey, these moves are part of IBM's broader strategy to strengthen its technology offerings.

IBM returned $6.1 billion to shareholders in 2024 through dividends, supporting a $6.68 annual dividend per share with a 2.78% yield, alongside a free cash flow of $12.7 billion for the year. With a beta of 0.67, the company demonstrated lower volatility than the broader market, while infrastructure growth is anticipated, notably with its Z mainframe refresh cycle. IBM also indicated that while it is keeping an eye on global tariffs, it expects no significant impact on product availability.

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