WASHINGTON - IBM (NYSE: NYSE:IBM) has been awarded a five-year contract with an initial funding of $26 million by the U.S. Agency for International Development (USAID) to bolster its Cybersecurity Protection and Response (CPR) program. The contract focuses on enhancing cybersecurity response for host governments in Europe and Eurasia (E&E) region, aiming to improve their resilience against cyber threats.
The initiative is part of USAID's broader effort to promote inclusive growth and democratic societies through secure and robust digital ecosystems. The contract with IBM will see the company's multidisciplinary team offering continuous assistance to strengthen the capabilities of government agencies and operators of critical infrastructure.
This support includes services in cybersecurity-related program management, incident response, capacity building, and other areas to help combat the increasing threat of cyberattacks.
Ambassador Erin E. McKee, Assistant Administrator for the Europe and Eurasia Bureau at USAID, emphasized the importance of digital technology in fostering inclusive growth and empowering vulnerable populations. She expressed confidence that IBM's global experience in cybersecurity services would be instrumental in advancing USAID's mission.
Alice Fakir, Partner and Lead of Cybersecurity Services for the U.S. Federal Market at IBM Consulting, highlighted the necessity of integrating cyber threat mitigation and capacity-building into IT modernization efforts for the benefit of USAID host countries.
IBM brings to the table its extensive security research and delivery capabilities, monitoring over 150 billion security events daily across more than 130 countries.
The company is known for its global hybrid cloud and AI solutions, offering consulting expertise to clients worldwide. IBM's offerings are relied upon by thousands of government and corporate entities in critical sectors, including financial services, telecommunications, and healthcare. These services are designed to help clients leverage data insights, streamline processes, and secure competitive advantages efficiently and securely.
The information for this article is based on a press release statement from IBM.
In other recent news, IBM has seen a slew of analyst activity, with Bernstein SocGen Group and Evercore ISI maintaining Market Perform and Outperform ratings respectively. The firms anticipate a modest Q2 revenue upside for IBM, with contributions from Red Hat and the consulting segment. They expect IBM to maintain its 2024 revenue and free cash flow guidance.
In addition, Goldman Sachs (NYSE:GS) initiated coverage on IBM with a Buy rating, emphasizing the company's focus on infrastructure software assets related to open-source and artificial intelligence. BofA Securities also maintained a Buy rating, highlighting IBM's potential in General AI, which could benefit both its consulting and software segments.
These recent developments reflect IBM's strategic focus on AI and hybrid cloud services, and the potential for Red Hat to reaccelerate its performance. Analysts project IBM's revenue and EPS to grow steadily, with revenue increasing from $60,532 million in 2024 to $65,517 million in 2025, and EPS from $9.13 in 2024 to $10.34 in 2025.
InvestingPro Insights
Amid IBM's recent contract win with the U.S. Agency for International Development, the company's financial metrics suggest a robust business outlook. With a market capitalization of $170.69 billion and a steady revenue growth of 2.45% over the last twelve months as of Q1 2024, IBM continues to demonstrate its capacity to secure significant government contracts and expand its operations. Its gross profit margin stands strong at 55.63%, underscoring the company's efficiency in maintaining profitability amidst its diverse offerings in cybersecurity, cloud, and AI solutions.
InvestingPro Tips highlight IBM's consistent performance, including its track record of raising its dividend for 28 consecutive years, which signals a reliable return to investors. Furthermore, the company's status as a prominent player in the IT Services industry is cemented by its extensive security research and operational capabilities across the globe.
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