1029 GMT - IBM shares surge 8% premarket after the tech company announced increased revenue and a growing AI business Wednesday. The company's software division drove revenue, with strong growth expectations reflecting momentum across IBM's product portfolio, analysts at J.P. Morgan say. Better-than-expected free cash flow and earnings growth are also signs for optimism, the analysts write, while job cuts helped protect margins. Less encouragingly, the analysts flag deceleration in the company's hybrid cloud division, while revenue from its infrastructure operations is expected to fall. IBM's consultancy division is also pressured by tough competition and threats to demand, they add. (josephmichael.stonor@wsj.com)
(END) Dow Jones Newswires
January 29, 2026 05:29 ET (10:29 GMT)
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