ARMONK, N.Y. — IBM’s fourth-quarter earnings grew 6 percent even as revenue was largely flat, as the company benefited from growing, lucrative software businesses such as Internet-based computing and data analytics.
The results beat Wall Street’s expectations, as did the technology bellwether’s guidance for the current year. IBM’s stock increased in after-hours trading following the release of results.
IBM Corp. said Tuesday that it earned $5.83 billion, or $5.13 per share, in the October-December period. That’s up from $5.49 billion, or $4.62 per share, in the same period a year earlier.
The results include special items related to acquisitions and a charge IBM took to account for a British court decision that will increase its costs for paying pensions to some of its retired employees. Excluding those items, earnings were $5.39 per share in the latest quarter, above Wall Street’s estimates of $5.25 per share.
Revenue slid less than 1 percent to $29.3 billion from $29.49 billion.