International Business Machines Corp Stock Price, News & Analysis

IBM has announced the formation of a Workforce Innovation Board, a cross-functional panel of leaders addressing key topics like C-suite innovation, AI, and worker wellness. The board includes Justina Nixon-Saintil, IBM's vice president and chief impact officer, who leads the company's career-readiness initiatives and education partnerships.

A significant focus is on IBM SkillsBuild, a free education program providing access to coursework on AI, environmental sustainability, and professional workplace skills. IBM SkillsBuild has partnered with Usher's New Look to offer AI training and customized learning plans to thousands of students, particularly those from underrepresented communities in technology.

This initiative aims to prepare students for a competitive workforce by equipping them with knowledge about evolving technological innovations, especially as AI continues to be a driving force in the workplace.

IBM has introduced new generative AI capabilities to its managed Threat Detection and Response Services. The IBM Consulting Cybersecurity Assistant, built on the watsonx platform, aims to accelerate and improve the identification, investigation, and response to critical security threats. Key features include:

1. Historical correlation analysis to speed up complex threat investigations, reducing alert investigation times by 48% for one client.

2. A timeline view of attack sequences for better comprehension of critical threats.

3. Auto-recommended actions based on historical patterns and pre-set confidence levels.

4. A generative AI conversational engine providing real-time insights and support on operational tasks.

These advancements are designed to help security teams tackle the challenge of numerous attacks with time and resources, potentially improving overall security posture for clients.

IBM's Chief Impact Officer, Justina Nixon-Saintil, is leading the company's efforts to align business goals with ESG considerations. Her role focuses on scaling impactful initiatives globally, particularly in AI and hybrid cloud technologies. Key areas of emphasis include:

1. Training individuals in AI and ethical AI
2. Leveraging technology for community impact
3. Providing access to technology programs for workplace success

Nixon-Saintil's daily focus is on driving and scaling these efforts to align with IBM's leadership in the tech industry while measuring their community impact. This approach builds on IBM's long history of corporate responsibility and aims to enhance the company's preparedness for regulatory changes in the ESG landscape.

IBM's 2024 Cost of a Data Breach Report reveals a significant increase in global average breach costs, reaching $4.88 million, up 10% from the previous year. Key findings include:

1. 70% of breached organizations reported significant disruption.
2. Security staffing shortages led to $1.76 million higher breach costs.
3. AI and automation in security reduced breach costs by $2.2 million on average.
4. 40% of breaches involved data stored across multiple environments.
5. Intellectual property theft increased by 27%.
6. The average data breach lifecycle decreased to 258 days.

The report emphasizes the growing importance of AI-driven defenses and addressing risks associated with generative AI in cybersecurity.

IBM's board of directors has declared a regular quarterly cash dividend of $1.67 per common share. This dividend will be payable on September 10, 2024 to stockholders of record as of August 9, 2024. This decision continues IBM's long-standing tradition of paying consecutive quarterly dividends since 1916, showcasing the company's commitment to delivering consistent returns to its shareholders. The announcement reinforces IBM's financial stability and its ability to maintain a steady dividend payout, which may be attractive to income-focused investors.

IBM has announced a collaboration with several community college systems to offer cybersecurity and data analytics certificate programs starting this fall. The initiative aims to prepare students for high-tech jobs and address the growing need for AI-related skills. Participating institutions include the Alabama Community College System, Bay Area Community College Consortium, Colorado Community College System, and Louisiana Community and Technical College System.

This partnership responds to the increasing demand for workers skilled in applying AI tools. An IBM Institute of Business Value study suggests that executives expect 40% of their workforce to require reskilling in AI and automation over the next three years, particularly in entry-level positions. The certificate programs will help bridge this skills gap and prepare students for the evolving job market.

IBM reported strong second-quarter 2024 results, with revenue reaching $15.8 billion, up 2% (4% at constant currency). The company's performance was driven by Software revenue growth of 7% and improved free cash flow. IBM's book of business for generative AI has grown to over $2 billion since the launch of watsonx a year ago.

Key financial highlights include:

• Gross Profit Margin (GAAP): 56.8%, up 180 basis points
• Pre-Tax Income Margin (GAAP): 14.1%, up 110 basis points
• Diluted Earnings Per Share (GAAP): $1.96, up 14%

IBM has raised its full-year free cash flow expectation to more than $12 billion. The company continues to expect constant currency revenue growth consistent with its mid-single digit model for 2024.

IBM has introduced two new SkillsBuild certificates in cybersecurity and data analytics, designed in collaboration with community colleges. These certificates will be available to students across Alabama, California Bay Area, Colorado, and Louisiana community college systems this fall.

The certificates are accessible to various learners, from first-time degree seekers to career changers. They were developed with academic and industry experts, including Jobs for the Future (JFF) and a coalition of industry professionals. Each certificate requires 60-65 hours of coursework and can be integrated into existing college curricula.

The American Council on Education (ACE) recommends 12 credits for the Cybersecurity Certificate and 8 credits for the Data Analytics Certificate. These initiatives are part of IBM's commitment to provide 30 million people with new skills for future jobs by 2030.

IBM has secured a five-year contract with $26 million in initial funding from USAID to support its Cybersecurity Protection and Response (CPR) program in the Europe and Eurasia region. The contract aims to strengthen the ability of host government agencies and critical infrastructure operators to combat cyber threats. IBM will provide cybersecurity-related program management, incident response, and capacity building services to help USAID build a secured, interoperable, and resilient digital ecosystem.

IBM's global experience in cybersecurity services, including monitoring 150 billion+ security events per day in over 130 countries, will be leveraged to support USAID's strategic goals of improving development and humanitarian assistance outcomes through digital technology.