IBM Stock Soared 12% Higher in January. Here's How.

Shares of International Business Machines (NYSE: IBM) rose by 12.3% in January 2024, according to data from S&P Global Market Intelligence. The centennial computing giant soared on the wings of a stellar earnings report, indicating that Big Blue's fundamental bet on cloud computing and artificial intelligence (AI) is starting to pay off.

The raw numbers in IBM's earnings report weren't exactly spine-tingling. Revenue increased 4.1% year over year to $17.4 billion, edging out the consensus analyst estimate by $80 million. On the bottom line, adjusted earnings rose 7.5% to $3.87 per diluted share, exceeding your average analyst's target by 2%. Robust results, but hardly a game-changing report so far.

The truly market-moving news showed up elsewhere in the report. Based on recent and current business trends, IBM's management expects revenue growth in mid-single-digit percentages next year, which is about double the growth expected by Wall Street pros. Free cash flows should land near $12 billion in 2024, up from last year's total of $11.2 billion -- beating the company's guidance from three months earlier by $1.5 billion.

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Source Fool.com