International Business Machines stock rose after the company reported better-than-expected earnings results for its latest quarter.

For the December quarter, IBM reported earnings per share of $4.52, compared with the consensus call for $4.31 among Wall Street analysts tracked by FactSet. Revenue came in at $19.7 billion, which was ahead of analysts' expectations for $19.2 billion.

"2025 put IBM's durability, resilience and differentiation on display. Our portfolio mix, integrated value and rapid innovation drove higher revenue growth and double-digit profit and free cash flow growth," IBM Chief Financial Officer James Kavanaugh said in a press release.

IBM shares were up 8% in after-hours trading following the results.

For the full 2026 year, IBM now forecasts more than 5% revenue growth in constant currency, which is roughly in line with the Wall Street consensus.

Last week, Stifel analyst David Grossman reaffirmed his Buy rating and $325 price target for IBM, citing strength in the company's software business.

"We view IBM's enterprise software portfolio as more defensive than most vendors," he wrote. "We continue to recommend IBM for defensive-minded investors."

IBM stock has rallied 30% over the past 12 months as of Wednesday's close, compared with 21% gain for the Nasdaq Composite index.