International Business Machines Corp. (IBM) experienced a boost in its stock price, climbing approximately 5% during Wednesday's extended session, following the company's release of its latest quarterly results. IBM reported net income of $3.3 billion, or $3.55 per share, surpassing last year's figures of $2.9 billion, or $2.96 per share.

The technology giant also outperformed analysts' expectations on an adjusted basis, earning $3.87 per share from continuing operations, compared to the estimated $3.79 per share. Furthermore, revenue for the quarter rose from $16.7 billion to $17.4 billion, slightly exceeding the FactSet consensus of $17.3 billion.

IBM showcased positive growth across multiple segments, with software revenue increasing by 3%, consulting revenue by 6%, and infrastructure revenue by 3%. Notably, the company recorded an impressive 8% growth in sales from Red Hat, a subsidiary within its software segment. Software revenue associated with data and artificial intelligence also saw a modest increase of 1%.

CEO Arvind Krishna acknowledged the growing demands for artificial intelligence, highlighting the doubling of the company's book of business for WatsonX and generative AI from the third to the fourth quarter. Krishna emphasized the accelerating demand from clients for AI solutions.

Looking ahead, IBM's management is anticipating revenue growth in line with its mid-single-digit model for the full year. However, they anticipate a negative impact on top-line growth by approximately one percentage point due to fluctuations in foreign exchange rates. The company is also targeting approximately $12 billion in free cash flow for 2024, a forecast that surpassed Wall Street's expectations of $11 billion.

Industry analysts expressed positive sentiments towards IBM's strong free cash flow projection, deeming it "impressive." Additionally, the company's revenue growth forecast for 2024 exceeded FactSet expectations, indicating a promising outlook for the future.

Overall, with its better-than-expected profits, increased AI demand, and solid future projections, IBM has demonstrated resilience and positioned itself as a key player in the technology industry.

Please note that this article is generated based on the provided information and does not include any additional sources or external research.