IBM stock surges over 8% post-report, driven by Q4 revenue beat and strong software demand.

From Nasdaq: 2025-01-30 21:41:02

IBM reported Q4 revenue of $17.6 billion, beating estimates, driven by strong demand for AI solutions and Red Hat Linux. Stock surged over 8% post-results. IBM’s core software operations led growth, with software sales up 10%. Adjusted earnings were $3.92 per share, up 1% y-o-y, with a 50 bps rise in the operating margin to 60.6%.

IBM stock has returned 45% since the start of 2024, outperforming the S&P 500. Strong demand for software business has boosted stock price growth. Investors seeking smoother rides can consider the High-Quality portfolio, which has outperformed the S&P with >91% returns since inception.

Current valuation of IBM stock at $245 may be fully priced. Investors should wait for a dip or consider other tech stocks like MSFT for long-term gains. IBM’s 4-year returns have shown consistent growth, but the Trefis High-Quality Portfolio offers a less volatile option with better returns compared to the S&P 500.



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