IBM earnings Q4 2025

IBM’s reported better than expected fourth quarter It announced the results on Wednesday and released a slightly higher forecast.

Here’s how the company performed compared to LSEG consensus estimates:

• Earnings per share: Adjusted $4.52, expected $4.32
• Revenues: $19.69 billion versus the expected $19.23 billion.

Revenue rose 12% in the period from $17.6 billion a year earlier. Net income rose to $5.6 billion, or $5.88 per share, from $2.92 billion, or $3.09 per share, in the same period last year.

IBM said it expects full-year revenue growth to exceed 5%, slowing from 8% last year. Analysts expect sales to grow 4.6% in 2026, according to LSEG. The company said its free cash flow, which reached $14.7 billion in 2025, should increase by $1 billion.

CEO Arvind Krishna said in a statement that the company’s productive AI business book has reached more than $12.5 billion.

“This capped a strong 2025 for IBM, where we beat revenue, profit and free cash flow expectations,” Krishna wrote.

He also said during the earnings call with analysts that the company is on track to deliver its first large-scale quantum computer by 2029.

IBM said software revenue rose 14% to $9 billion in the fourth quarter, leveraging automation, data and Red Hat products. Infrastructure sales rose 21% to $5.1 billion for the IBM Z Systems mainframe computer line, representing 67% growth over last year.

The company’s board of directors approved a dividend of $1.68 per share, payable on March 10.