IBM Rises After Q4 Earnings Beat, Cloud Revenue Up 12%

IBM Common Stock IBM shares are higher after reporting a fourth-quarter earnings and sales beat after Tuesday's close.

Fourth-quarter adjusted earnings came in at $4.87, beating estimates by 3 cents. Sales came in at $21.76 billion, beating estimates by $10 million. IBM also issued strong FY2019 earnings guidance and sees free cash flow of approximately $12 billion.

"In 2018 we returned to full-year revenue growth, reflecting growing demand for our services and leadership solutions in hybrid cloud, AI, analytics and security," said Ginni Rometty, IBM Chairman, President and CEO. "Major clients worldwide, such as BNP Paribas, are turning to the IBM Cloud and our unmatched industry expertise to transform their businesses and drive innovation."

Q4 Highlights

• Total Revenue up 1 percent
• Strategic Imperatives revenue up 9 percent
• Cloud revenue up 12 percent

IBM shares were up 4.7 percent to $128.34 at time of publication.

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