IBM Stocks Rise on Strong AI-Driven Q4 Earnings

IBM reported fourth-quarter earnings that surpassed analyst expectations, with adjusted earnings per share of $3.92, outperforming the consensus estimate of $3.73, though revenue was $17.55 billion, slightly missing the anticipated $17.62 billion. Growth was driven by the robust performance of IBM's software segment, which saw a 10% increase year over year due to heightened demand for cloud infrastructure and AI technology. IBM's open-innovation approach to AI, including its 'Granite' AI models being open-source, has contributed to a $5 billion AI book of business. Following the earnings report, IBM's shares rose significantly in after-hours trading, reflecting investor confidence in its AI-centric strategy and future growth projections. Looking forward, IBM has set optimistic revenue growth targets for 2025, indicating continued momentum in its core businesses.