IBM Reports Flat Revenue in the Fourth Quarter

In its financial report for the final quarter of 2022 and the full year, IBM reported solid results. While the revenue was flat in the quarter, during the financial year 2022 revenue recorded the highest growth in a decade.

During the final three months of 2022, IBM had $16.7 billion in revenue. Software revenue went up 3%, infrastructure 2%, and consulting revenue grew 0.5%. Net profit was up 17% at $2.9 billion. In 2022, IBM reported a 6% revenue growth to $60.5 billion, the biggest jump in the last decade. Net income in the full year was up 62% at $1.8 billion.

"Our solid fourth-quarter performance capped a year in which we grew revenue above our mid-single digit model. Clients in all geographies increasingly embraced our hybrid cloud and AI solutions as technology remains a differentiating force in today's business environment," said Arvind Krishna, IBM chairman, and chief executive officer. "Looking ahead to 2023, we expect full-year revenue growth consistent with our mid-single digit model.

"IBM's revenue growth and operating profit in 2022 demonstrate the strength and multiplier effect of our platform-centric approach to hybrid cloud and AI," said James Kavanaugh, IBM senior vice president, and chief financial officer. "Our client-focused portfolio and strong recurring revenue stream position IBM well for continued growth, solid cash generation, and returning value to shareholders through dividends.