International Business Machines Corp Stock Price, News & Analysis

IBM has released its annual banking outlook report for 2025, highlighting significant shifts in generative AI adoption within the financial services industry. The study reveals that while only 8% of banks were systematically developing generative AI in 2024, with 78% taking a tactical approach, this is expected to change dramatically in 2025.

Key findings show that 60% of banking CEOs acknowledge the need to accept some risk to leverage automation advantages. Over 16% of clients globally are comfortable with fully digital banking relationships, while competition is evolving toward higher-value services, including embedded finance and advisory services for affluent investors and SMEs.

The report analyzes data from eight major markets: the United States, Canada, European Union, United Kingdom, Japan, China, and India, focusing on C-suite leader sentiment, customer behavior, and economic trends.

Telefónica Tech and IBM have announced a collaboration agreement to develop security solutions addressing challenges posed by future quantum computers. The partnership involves integrating IBM's quantum-safe technology into Telefónica Tech's cybersecurity services.

The agreement includes deploying IBM's quantum-safe infrastructure at Telefónica Tech's Madrid headquarters, featuring IBM LinuxONE system, IBM Storage technology, and advanced key protection tools. IBM will provide its Guardium Quantum Safe suite, including Key Lifecycle Manager, Quantum Safe Explorer, and Quantum Safe Remediator, to help organizations manage cryptography and address vulnerabilities.

The collaboration aims to implement new quantum-safe cryptography standards defined by NIST, with IBM having co-developed two of the three published post-quantum cryptography standards. Telefónica Tech will assist organizations in transitioning to new cryptographic standards and establishing a joint use case office focused on communications encryption and critical environment protection.

IBM reported Q4 2024 earnings with revenue of $17.6 billion, up 1% year-over-year. The company's Software segment showed strong performance with 10% revenue growth, while Consulting declined 2% and Infrastructure decreased 8%. Generative AI business reached $5 billion inception-to-date, increasing nearly $2 billion quarter over quarter.

Full-year 2024 revenue was $62.8 billion, up 1%. The company generated $12.7 billion in free cash flow, exceeding expectations. Software revenue grew 8%, while Consulting declined 1% and Infrastructure decreased 4%. Gross profit margin improved to 56.7% GAAP.

Looking ahead to 2025, IBM expects revenue growth of at least 5% at constant currency and projects free cash flow of about $13.5 billion.

IBM (NYSE: IBM) has announced its board of directors has declared a regular quarterly cash dividend of $1.67 per common share. The dividend will be paid on March 10, 2025, to stockholders of record as of February 10, 2025. This payment continues IBM's remarkable track record of paying consecutive quarterly dividends since 1916, demonstrating over a century of consistent shareholder returns.

IBM and Palo Alto Networks released a global study revealing significant challenges in cybersecurity complexity. Organizations are managing an average of 83 security solutions from 29 vendors, with security fragmentation costing companies approximately 5% of annual revenue. 75% of organizations pursuing consolidated security agree better integration across security platforms is crucial.

The research shows that companies with high security platformization report better business outcomes, with 7 out of 10 seeing improved operational efficiencies and revenue generation. Organizations using platformization experience nearly 4 times better ROI and reduce incident response times by an average of 72-84 days. With 90% of executives planning to scale AI within two years, platform approaches are becoming important for security preparedness.

e& and IBM have announced a collaboration to deploy an end-to-end AI governance solution, leveraging IBM's watsonx.governance platform and consulting expertise. The announcement, made at the World Economic Forum 2025 in Davos, aims to enhance e&'s AI governance framework to ensure compliance, oversight, and ethical practices across its AI ecosystem.

The solution introduces automated risk management, compliance monitoring, and real-time performance analysis features. It will establish a centralized inventory of AI models, supporting full traceability and oversight while enabling real-time monitoring of model performance, risk scoring, and compliance metrics.

IBM Consulting will work with e& to implement a comprehensive AI governance framework, utilizing IBM Consulting Advantage to accelerate development through persona mapping, market research, and architecture patterns for AI integration. This collaboration builds on their existing partnership, which recently produced a joint report on AI opportunities in the MENA region.

IBM has announced its intent to acquire Applications Software Technology , a global Oracle consultancy specializing in public sector cloud transformations. The acquisition will enhance IBM's Oracle solutions capabilities across North America, the UK, and Ireland, building on IBM's 2024 Accelalpha acquisition.

Applications Software Technology brings expertise in Oracle Cloud Applications Suite, particularly in Oracle Fusion Cloud ERP, HCM, and CPQ, along with Oracle Cloud Infrastructure. The company has been an Oracle partner since 1996 and serves public sector clients, including local government and K-12 education, as well as commercial clients in manufacturing, energy, and consumer packaged goods industries.

The transaction is expected to close in Q1 2025, with Applications Software Technology joining IBM Consulting. Financial terms were not disclosed. The acquisition aligns with IBM's open ecosystem approach and will strengthen its position in helping clients navigate complex business transformations with Oracle cloud solutions.

IBM and L'Oréal have announced a groundbreaking collaboration to develop the first-of-its-kind AI foundation model for cosmetic formulation. The partnership aims to leverage IBM's generative AI technology to enhance L'Oréal's ability to create sustainable cosmetics and meet its environmental goals by 2030.

The initiative will utilize L'Oréal's cosmetic science expertise combined with IBM's AI capabilities to analyze formulation data, facilitate the use of sustainable raw materials, and reduce energy and material waste. The AI model will process numerous formulations and component data points to accelerate product development, reformulation, and production optimization processes.

This technology will support L'Oréal's 4,000 researchers worldwide in developing more sustainable product lines with greater inclusivity and personalization. The collaboration focuses on understanding renewable ingredients' behavior in cosmetic formulas, aiming to help L'Oréal achieve its target of sourcing most product formulas from bio-sourced materials and circular economy by 2030.

IBM has announced it will hold its quarterly conference call to discuss fourth-quarter 2024 financial results on Wednesday, January 29, 2025, at 5:00 p.m. ET. Investors can access the live webcast of the earnings call through www.ibm.com/investor, where the earnings press release will also be available before the webcast. Following the event, IBM will provide access to a replay of the call, along with associated charts and prepared remarks.