International Business Machines Corp. (NYSE: IBM) Thursday posted fourth-quarter earnings that topped analyst’s estimates, boosted by higher cloud sales.
The company said net income rose to $4.5 billion, or $4.72 per share, in the quarter ended December 31, compared with $4.46 billion, or $4.59 per share. Excluding certain items, earnings were $5.01 per share. Analysts polled by Thomson Reuters had projected earnings of $4.88 a share.
Revenue fell 1.3 percent to $21.77 billion in the fourth quarter, slightly beat analysts’ estimate of $21.63 billion.
Revenue from cloud service and analytics service continued their rapid growth in the fourth quarter. Cloud revenue rose 33 percent to $8.6 billion while revenue from analytics increased 9 percent.
“In 2016, our strategic imperatives grew to represent more than 40 percent of our total revenue and we have established ourselves as the industry’s leading cognitive solutions and cloud platform company,” said Ginni Rometty, IBM chairman, president and chief executive officer. “IBM Watson is the world’s leading AI platform for business, and emerging solutions such as IBM Blockchain are enabling new levels of trust in transactions of every kind. More and more clients are choosing the IBM Cloud because of its differentiated capabilities, which are helping to transform industries, such as financial services, airlines and retail.”