IBM delivers strong Q4, 12% revenue growth

IBM delivered fourth quarter revenue growth of 12% as it saw strength in infrastructure courtesy of mainframes and software sales. IBM said its book of business for AI is more than $12.5 billion. 

The company reported fourth quarter earnings of $5.6 billion, or $5.86 a share, on revenue of $19.7 billion. Non-GAAP earnings were $4.52 a share. 

Wall Street was expecting IBM to report non-GAAP fourth quarter earnings of $4.29 a share on revenue of $19.21 billion.

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CEO Arvind Krishna said:

"We enter 2026 with momentum and in a position of strength, giving us confidence in our full-year expectations of more than 5 percent constant currency revenue growth and an increase of about $1 billion in year-over-year free cash flow."

 

In the fourth quarter, software revenue was up 14% with consulting revenue up 3% and infrastructure revenue up 21%. IBM's next-gen mainframe platform is surging. 

For 2025, IBM delivered revenue of $67.5 billion, up 8%, with net income of $10.6 billion. 

As for the outlook, IBM is projecting constant currency revenue growth of 5% or more. Free cash flow will be up about $1 billion.