IBM Shares Rise About 7% After Results

IBM shares jumped 7% in after-hours trading on Monday, January 24, after the software and services company said revenue jumped 6% in the fourth quarter, beating expectations.

Revenue came in at $16.7 billion, versus analyst expectations of $15.96 billion, according to Refinitiv.

The company showed the fastest revenue growth since the third quarter of 2011.

The net income in the fourth quarter jumped by 72% compared to the same period of the previous year, to $2.33 billion.

IBM CEO Arvind Krishna reiterated the single-digit medium growth target during a conference call with analysts, and said he expects between $10 billion and $10.5 billion in free cash flow for 2022.

IBM recently announced its acquisition of Australian cloud consultancy SXiQ.