IBM Announces Strong Q1 2024 Earnings, Led by Hybrid Cloud and AI Growth
IBM (NYSE: ) today announced its first-quarter 2024 earnings results, demonstrating the strength of its hybrid cloud and AI strategy. The company reported solid revenue and free cash flow growth, reflecting the growing demand for enterprise AI solutions. IBM’s book of business for Watsonx and generative AI continues to show strong momentum, with quarter-over-quarter growth. The company anticipates revenue performance in line with its mid-single digit model and growth in free cash flow for the full year.
To further strengthen its position in the hybrid cloud and AI-driven technology landscape, IBM announced its intent to acquire HashiCorp, Inc. The acquisition will create a comprehensive end-to-end hybrid cloud platform designed for the AI era. The combined portfolios of IBM and HashiCorp will provide clients with a solution to manage growing application and infrastructure complexity.
IBM continues to focus on its business fundamentals, including expanding operating margins, improving profit performance, and increasing productivity. The company generated net cash from operating activities of $4.3 billion, up year-to-year. Net cash from operating activities excluding IBM Financing receivables was $3.3 billion. IBM’s free cash flow was $3.5 billion, also up year-to-year. The company returned $1.6 billion to shareholders in dividends in the first quarter.
IBM ended the first quarter with $13.5 billion of cash and marketable securities, up from $12.9 billion at the end of 2023. Debt, including IBM Financing debt of $28.2 billion, totaled $48.2 billion, up since the end of 2023.
IBM believes that its strong cash generation and solid financial performance position it well to invest in both organic growth initiatives and strategic acquisitions, such as the planned acquisition of HashiCorp. The company remains committed to creating value for shareholders through its dividend and other strategic initiatives.
