IBM Corp (NYSE:IBM) reported financial results for the fourth quarter on Wednesday after the bell. Here’s a rundown of the report.
- IBM shares are powering higher. Why are IBM shares rallying?
IBM Beats On Top and Bottom Lines
IBM reported fourth-quarter revenue of $19.69 billion, beating the consensus estimate of $19.23 billion, according to Benzinga Pro. The company reported fourth-quarter adjusted earnings of $4.52 per share, beating analyst estimates of $4.32 per share.
Total revenue was up 12% on a year-over-year basis. Here’s a breakdown of revenue by category.
- Software: up 14%
- Consulting: up 3%
- Infrastructure: up 21%
Cash flow from operations totaled $4 billion in the fourth quarter and free cash flow came in at $7.6 billion. IBM ended the period with $14.5 billion of cash, restricted cash and marketable securities.
“In the fourth quarter, we delivered strong revenue growth, with double-digit Software performance. Additionally, Infrastructure continued its double-digit revenue growth with the robust adoption of the next generation of our mainframe platform. Our generative AI book of business now stands at more than $12.5 billion,” said Arvind Krishna, chairman, president and CEO of IBM.
IBM’s board approved a quarterly cash dividend of $1.68 per share, payable on March 10 to shareholders of record as of Feb. 10.
Full-Year 2026 Expectations
IBM expects full-year 2026 revenue of $70.91 billion versus estimates of $70.14 billion, representing constant currency revenue growth of more than 5%. Free cash flow is expected to increase by about $1 billion year-over-year.
“We enter 2026 with momentum and in a position of strength, giving us confidence in our full-year expectations,” Krishna said.
IBM Shares Surge After The Close
IBM Price Action: IBM shares were up 8.22% in after-hours, trading at $318.29 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Shutterstock.com
Recent Comments