Revenue Performance: IBM reported a quarterly revenue of $17.6 billion, a 2% increase from the previous quarter. The full-year revenue stood at approximately $63 billion, with Software leading the charge at 9% growth overall.
Profitability Metrics: The net income for Q4 was $2.915 billion, down from last year's Q4, reflecting an annual decline of 11% but with a significant quarterly increase of 983%. Operating income positively expanded by 120 basis points year-over-year. Operating earnings per share reached $3.92, a 1% increase year-over-year.
Cash Flow Generation: The company reported a free cash flow of $12.7 billion for the year, an increase of 14%. The cash conversion cycle remained favorable, giving it the capacity to innovate and sustain dividends.
Balance Sheet Integrity: Cash and cash equivalents totaled $14.8 billion, and total debt decreased to $55 billion, an improvement of $1.6 billion over the year. The debt-to-equity ratio remained at 2.14, indicating a healthy leverage position.
Margin Expansion: Operating pre-tax margin increased by 120 basis points, reflecting effective cost management and operating leverage adjustments.