IBM has announced its fourth quarter and FY2023 earnings results, cementing a successful 2023 for Big Blue with the company unveiling several partnerships, new quantum ventures, AI alliances and more.

For the fourth quarter, IBM reported revenues saw an increase of four percent at $17.4bn. Software revenue saw an increase of three percent, similar to infrastructure revenue which also saw an increase of three percent. Consulting revenues saw an increase of six percent, taking lead for the quarter.

Software revenues brought in $7.5bn for the quarter with data and AI, and automation increased by one percent and transaction processing increased by five percent. Red Hat led the way for software revenues with an eight percent increase, whereas security let the segment down with a decrease of five percent.

For FY23, IBM has reported revenues of $61.9bn, an increase of two percent. Software and consulting revenues each saw an increase of five percent for the year, whereas infrastructure let the company down with a five percent decrease.

For users, an increasing number are utilizing AI to enhance business processes, boost productivity and relieve employees of administrative burdens at work. In an earnings call, IBM CEO, Arvind Krishna said: “Our approach to AI for business is resonating. Earlier in 2023, we introduced watsonx – IBM’s core platform that enables clients to train, tune, validate and deploy AI models. We believe AI will be multi-model, with our clients leveraging a combination of models – IBM’s, open-source, their own proprietary models and those of other companies. Flexibility of deployment is key. Simply put, we meet clients where they are, and allow clients to deploy AI models across multiple environments.”

The company expects constant currency revenue growth consistent with its mid-single digit model. At current foreign exchange rates, currency is expected to be about a one-point headwind to revenue growth.