IBM is at a critical juncture in hybrid cloud and AI monetization, where Red Hat, consulting, and platform services are expected to counterbalance declining legacy infrastructure demand. Free cash flow guidance of $12 billion for FY25 boosts investor confidence. Estimated revenue growth stands at approximately 2.6% YoY with EPS growth of around 7.6%, primarily driven by improved software and service mix. Key focus areas include Red Hat and AI software uptake, consulting bookings, and infrastructure outlook as investors anticipate performance amid macro challenges.
IBM is navigating an inflection point in hybrid cloud and AI monetization as Red Hat, consulting, and platform services work to offset soft demand in legacy infrastructure.
The company's estimated YoY revenue growth is ~2.6%, with profit expansion coming from operating leverage and an improved mix of software and service.
IBM's high-value software and consulting business lines aim to drive margin expansion and predictability amidst mixed macro demand.
Updates on the watsonx platform traction, enterprise adoption rates, and AI-related consulting deals will be crucial for IBM's performance credibility.
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