How did IBM's Q4 2024 earnings surprise investors?

IBM's Q4 2024 earnings report surprised investors in several ways: 1. **Revenue Growth**: IBM reported a total revenue of $17.54 billion for Q4 2024, with an estimate of $17.90 billion expected by analysts. This marked a 2% increase year-over-year, which aligned with the growth seen in Q3 2024, indicating a consistent performance improvement. 2. **Earnings Per Share (EPS)**: The estimated EPS for Q4 2024 was $3.75, slightly below the analyst expectation of $3.78. However, this difference was negligible and may not have led to significant surprises among investors familiar with IBM's performance trends. 3. **Software Segment Performance**: IBM's software business segment, which includes hybrid platforms and transaction processing, saw a 9.7% revenue increase, reaching $6.524 billion. This significant growth, especially in areas like Red Hat, reflected IBM's strategic focus on high-growth sectors such as cloud computing and artificial intelligence. 4. **Dividend Announcement**: IBM announced a regular quarterly cash dividend of $1.67 per common share, payable on December 10, 2024. This consistent dividend payment is a testament to IBM's financial stability and commitment to returning value to shareholders, which may have positively influenced investor perceptions. Overall, while there were minor discrepancies with analyst expectations, IBM's Q4 2024 earnings report highlighted the company's strategic focus on growth areas, operational performance improvements, and commitment to shareholder returns, which likely contributed to a positive investor sentiment.