Shares of International Business Machines Corporation (IBM) surged more than 6% in Thursday morning trading after the tech giant reported stronger fourth-quarter earnings and double-digit revenue growth, driven by robust software and infrastructure performance.
IBM posted net income of $5.60 billion, or $5.98 per share, compared with $2.91 billion, or $3.15 per share, a year ago. Adjusted earnings for the quarter came in at $4.52 per share. Revenue rose 12.2% year-over-year to $19.69 billion from $17.55 billion.
Software revenue climbed 14%, while Infrastructure revenue jumped 21% amid strong demand for IBM's next-generation mainframe platform. Consulting revenue grew 3%.
CEO Arvind Krishna highlighted that IBM's generative AI book of business has surpassed $12.5 billion, helping cap a strong 2025 performance. The company expects more than 5% constant-currency revenue growth in 2026 and about a $1 billion year-over-year increase in free cash flow.
IBM shares traded at $312.56, up $18.40, with volume slightly below average. The stock opened at $317.86 after closing Wednesday at $294.16.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.