IBM Beats; Revenue Down 1% To $29.3B; Net Income Up 6% To $6.1B

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IBM just released its Q4 2012 financials. The company’s GAAP net income came in at $5.8 billion, up 6% from last year. Non-GAAP net income was $6.1 billion. Overall, the company reported revenue of $29.3 billion, down 1%. Earnings per share were $5.39 compared to $4.71 per share in the fourth quarter of 2011, an increase of 14 percent.

Analysts expected double digit growth from IBM. According to Thomson Reuters, IBM was expected to report earnings per share of $5.25, up from $4.71 compared to last year. Analysts also expected an 11% growth rate. Revenue  was supposed to slip 1.2% to $29.1 billion.

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Net income for the year ended December 31, 2012 was $16.6 billion compared with $15.9 billion in the prior year, an increase of 5 percent. Operating (non-GAAP) net income was $17.6 billion compared with $16.3 billion in 2011, an increase of 8%.

Non-GAAP diluted earnings were $15.25 per share, compared with operating diluted earnings of $13.44 per share in 2011, an increase of 13 percent. This was the company’s 10th consecutive year of double-digit EPS growth.

Here are some details for IBM’s various business units:

  • Software revenue was $7.9 billion, up $3.5%. For the year, revenues were $25.44 billion, up 2%.
  • Services revenue were $10.28 billion, down 1.6%. Services were $18.5 billion, down 3.7%.
  • Systems and Technology were $5.76 billion, down 0.7%. For the year, revenues were $17.66 billion, down 6.9%.
  • Growth markets increased 4% for the fourth quarter.

(We will update the news as information comes available.)