IBM Shares Surge Over 5% on Strong Software Division Growth and Better-Than-Expected Q4 Earnings

Stock News
Jan 29

On Thursday, IBM (IBM.US) shares climbed more than 5%, reaching $311.15. The earnings report revealed that IBM's fourth-quarter revenue increased by 12% year-over-year to $19.7 billion, surpassing the expected $19.2 billion. Non-GAAP earnings per share came in at $4.52, exceeding expectations by $0.23. This robust performance was primarily driven by strong growth in its closely watched software division. IBM projected that, after adjusting for currency fluctuations, revenue growth in 2026 would exceed 5%. This forecast outpaced Wall Street's expectation of 4.1% growth. Free cash flow is anticipated to reach approximately $15.7 billion, also surpassing analysts' average estimate. CEO Arvind Krishna stated, "We are entering 2026 with strong momentum and strength."

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