IBM reported a strong fourth-quarter performance with revenue of $19.69 billion, beating estimates of $19.23 billion. Earnings per share were $4.52, higher than the expected $4.32. Revenue increased by 12% from the previous year to $17.6 billion. The company expects full-year revenue growth to exceed 5% in 2026.

IBM’s net income rose to $5.6 billion, or $5.88 per share, from $2.92 billion, or $3.09 per share, in the year-ago period. CEO Arvind Krishna announced that the company’s artificial intelligence business generated over $12.5 billion in revenue. Software revenue increased by 14% to $9 billion, while infrastructure sales grew by 21% to $5.1 billion.

The company’s board of directors approved a dividend of $1.68 per share, payable on March 10. IBM expects free cash flow to grow by $1 billion after reaching $14.7 billion in 2025. With revenue, profit, and free cash flow surpassing expectations in 2025, CEO Arvind Krishna highlighted a successful year for IBM.

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1. Apple has become the first US company to reach a $3 trillion market cap, with shares reaching an all-time high of $182.88.
2. The US Labor Department reported that jobless claims dropped by 8,000 to a seasonally adjusted 198,000, the lowest level since 1969.
3. The Dow Jones Industrial Average rose 38.11 points to 36,042.17, while the S&P 500 gained 13.16 points to 4,717.03.
4. Existing home sales fell by 4.3% in November, the largest decline in 18 months, as rising mortgage rates and low inventory impacted the market.: IBM earnings Q4 2025