The stock of IBM (IBM) is up 10% after the technology company reported fourth-quarter 2025 financial results that beat Wall Street forecasts across the board.
The company announced earnings per share (EPS) of $4.52 U.S., which topped the $4.32 U.S. expected among analysts.
Revenue in the quarter totaled $19.69 billion U.S., which was ahead of the $19.23 billion U.S. forecast on Wall Street. Sales were up 12% from a year earlier.
IBM said its software revenue rose 14% to $9 billion U.S. in the fourth quarter of 2025, benefitting from automation, data, and Red Hat products.
Infrastructure sales increased 21% to $5.1 billion U.S., with 67% year-over-year growth in its IBM Z Systems line of mainframe computers.
Looking ahead, IBM said that it expects full-year 2026 revenue growth of more than 5%, decelerating from 8% in 2025. However, analysts expected sales growth of 4.6% this year.
Management said that free cash flow should increase by $1 billion U.S. after reaching $14.7 billion U.S. in 2025.
Additionally, IBM said that its generative artificial intelligence (A.I.) book of business reached more than $12.5 billion U.S. during 2025.
The company noted that it’s on track to deliver its first large scale quantum computer by 2029.
Before today (Jan. 29), IBM’s stock had risen nearly 30% over the past 12 months to trade at $294.16 U.S. per share.
Tech Insider
