Insider brief
IBM has booked $1 billion in revenue from quantum technology. This is expected to be substantial future growth as it focuses on transformative technologies such as Quantum and AI. IBM’s strategic investment in quantum and AI is at the heart of its growth, highlighted by the launch of advanced quantum computers and the new collaboration to establish the National Center for Quantum Algorithms in Chicago. The company reported a 1% increase in its fourth quarter 2024 revenues due to a 10% increase in software revenue, but consulting and infrastructure revenues declined.
IBM officials told CNBC that the company has booked a cumulative $1 billion over the years. We also hope that Quantum will bring more to the company towards transformative technology to deliver future real-world revenues.
The report did not specify when IBM’s quantum revenues began, but the company relied on emerging technologies, particularly quantum and artificial intelligence (AI) to drive new and expanded revenue streams. He emphasized that the level is increasing. This focus on strategic quantum and AI was particularly prominent in IBM’s latest quarterly and annual updates.
Last week, the company announced its fourth quarter 2024 revenue report in Wall Street approvals, indicating that AI is essential for IBM’s growth. Generated AI won $5 billion in its fourth quarter revenue statement for IBM’s Arvind Krishna, IBM Chairman and CEO Arvind Krishna.
“We closed the year with double-digit revenue growth for quarterly software led by Red Hat’s further acceleration. Our clients continue to rely on IBM worldwide and transform with AI. Krishna He stated: “Three years ago, we lay out a faster, more flexible IBM vision. I think the IBM team meets or exceeds our commitment. I’m proud of the work I’ve done. With a focused strategy, a strengthened portfolio and a culture of innovation, it has been well positioned since 2025, with revenue growth of at least 5% and around 135 this year. We are looking forward to a free cash flow of $100 million.”
Emerging technologies and increased investment
According to revenue reports, IBM is increasing investment in these deep technicians. The report shows segment profits were $1.06 billion compared to $1.3 billion in the last quarter. This was mainly due to higher investments in areas such as AI, hybrid cloud, and Quantum.
IBM also called Quantum in its Q4 2024 investor newsletter, including a series of highlights, including the launch of the most advanced quantum computers. Additionally, the company has expanded its quantum footprint by announcing collaborations to establish the National Quantum Algorithm Center at Illinois Quantum and Microelectronics Park in Chicago.
According to Krishna, Quantum and AI moves highlight IBM’s strategic focus on emerging technologies.
“With over 75 quantum systems deployed around the world, it is clear that we are focusing on new innovations,” Krishna said in a revenue call. “This quarter announced a collaboration with Illinois to establish the National Quantum Algorithm Center in Chicago. M&A continues to be a key enabler of our strategy. Neural Magic’s acquisition is Enhance AI solutions with advanced model optimization.”
Fourth and full year financial highlights
In other quarter news, IBM reported revenue of $17.6 billion, a 1% increase from the previous year, or 2% when adjusting a certain currency. Software revenues increased by 10%, but consulting and infrastructure revenues reduced by 2% and 8% respectively. Total profit margin reached 59.5% (GAAP), an increase of 40 basis points, and a 60.6% increase outside of GAAP, and an increase of 50 basis points.
Over the course of a year, IBM achieved a total revenue of $62.8 billion, reflecting a 1% increase, or a 3% increase in a certain currency. Software revenues increased by 8%, while consulting and infrastructure revenues fell by 1% and 4%, respectively. The total profit margin for the year was 56.7% (GAAP), an increase of 120 basis points, and a 57.8% on a non-GAAP basis, with an increase of 130 basis points.
