IBM Q4 2022 revenue of $16.7 billion flat year-over-year

For the full year 2022, IBM revenue increased 6 percent to $60.5 billion, or 12 percent on a constant currency basis (including growth in sales to Kyndryl, approximately 4 percentage points).

IBM’s fourth-quarter results by segment

1. Software business (including hybrid cloud platforms and solutions and transaction processing platforms) revenue was $7.3 billion, up 2.8 percent, or 8 percent on a constant currency basis

• Hybrid Cloud Platforms and Solutions revenue grew 5 percent, or 10 percent on a constant currency basis
• Red Hat revenue grew 10 percent or 15 percent at constant currency
• Automation revenue up 4 percent, up 9 percent at constant currency
• Data and Artificial Intelligence revenue grew 4%, or 8% at constant currency
• Security revenue grew 4 percent or 10 percent at constant currency
• Transaction processing revenue declined 3%, up 3% at constant currency

2. Consulting (including business transformation, technology consulting and application management) revenue was $4.8 billion, up 0.5 percent, or 9.3 percent at constant currency

• Business transformation revenue declined 1 percent or 7 percent at constant currency
• Technology consulting revenue increased 1 percent or 10 percent at constant currency
• Application management revenue grew 2 percent or 12 percent at constant currency

3. Infrastructure business (including hybrid cloud infrastructure, and infrastructure support) revenue was $4.5 billion, up 1.6 percent, or 7.4 percent at constant currency

• Hybrid cloud infrastructure revenue grew 6 percent or 11 percent at constant currency
• IBM Z revenue grew 16 percent or 21 percent at constant currency
• Distributed infrastructure revenue was flat year-over-year, up 5 percent at constant currency
• Infrastructure support revenue declined 8 percent, flat at constant currency

4. Global Finance (including Customer and Commercial Finance) revenue decreased by 0.4 percent to $200 million and increased by 3.9 percent at constant currency.

At the end of the fourth quarter, IBM held $8.8 billion in cash (including convertible bonds), an increase of $1.3 billion from year-end 2021.

In addition, IBM expects to maintain mid-single-digit revenue growth in 2023. At current exchange rates, the revenue growth rate is expected to increase by 0 to 1 percentage point over constant exchange rates.