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The Big Blue (NYSE: IBM) recently reported stellar fourth-quarter results. IBM’s performance had been declining for a while. But it appears to have made a rebound with the company delivering three straight quarters of positive growth.

IBM’s Financials

Revenues for the fourth quarter grew 8.6% to $16.7 billion, ahead of the Street’s estimates of $15.96 billion. Adjusted earnings of $3.35 a share were ahead of the $3.30 that the market predicted.

By segment, revenues from Cloud & Cognitive Software that includes Cloud & Data Platforms such as Red Hat, Cognitive Applications, and Transaction Processing Platforms grew 8% to $7.27 billion. Revenue from Global Business Services (GBS) including Consulting, Application Management, and Global Process Services grew 13% to $4.75 billion. Revenue from Global Technology Services (GTS) including Infrastructure & Cloud Services and Technology Support Services fell 15.7% to $4.7 billion.

IBM did not provide any outlook for the first quarter of the year.

IBM’s Acquisitions

IBM continued its acquisitions in the AI space and recently added two more companies to its mix. It recently announced the acquisition of SXiQ. Australia-based SXiQ works with Australia-based enterprises to migrate and modernize their cloud infrastructure. It helps these companies monitor and optimize their spending on cloud resources. The acquisition will allow IBM to advance its hybrid cloud and AI strategy by helping enterprises modernize and transform complex mission-critical applications on several clouds and platforms. It will enable IBM to enhance its consulting capabilities in Australia and New Zealand, especially with reference to services pertaining to infrastructure in the cloud. The terms of the deal were not disclosed.

Earlier this year, IBM announced the acquisition of another Australian firm Envizi. Envizi’s software provides companies with access to reliable data needed for analysis and understanding of emissions data across their operations. IBM plans to integrate Envizi’s AI-driven software with its existing package of products that includes the IBM Environmental Intelligence Suite, IBM Maximo asset management solutions, and IBM Sterling supply chain solutions. The move will help strengthen IBM’s portfolio of AI-based technologies needed by businesses to create sustainable operations and supply chains. Terms of the acquisition were not disclosed.

Meanwhile, IBM also continues to streamline its service offerings. It recently sold the healthcare data and analytics assets that are currently part of the Watson Health business to Francisco Partners. The sold assets include Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings. In November 2021, IBM had also completed the spin-off of its managed infrastructure service business, Kyndryl. IBM’s portfolio reorganization will help it focus on hybrid cloud and AI offerings for its technology and consulting services.

IBM’s stock is currently trading at $132.52 with a market capitalization of $118.78 billion. It touched a 52-week high of $146.121 in June last year. In February last year, IBM touched a 52-week low of $112.93.