IBM reported a internet earnings of $5.6bn for the fourth quarter of 2025 (This fall 2025), representing a 93.1% enhance from $2.9bn in the identical interval of the earlier yr.
The corporate’s income for the fourth quarter ended 31 December 2025 was $19.7bn, marking a 12% enhance in comparison with $17.6bn in This fall 2024.
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For the total yr 2025, the corporate’s internet earnings reached $10.6bn, a 76.7% enhance in comparison with $6bn in 2024.
IBM’s income for the total yr 2025 reached $67.5bn, an 8% rise in comparison with $62.7bn within the earlier yr.
Its internet money from working actions in 2025 was $13.2bn, with a free money move of $14.7bn.
The corporate anticipates greater than 5% income progress at fixed forex for 2026, with a forex tailwind anticipated so as to add about half some extent to progress. Free money move is projected to rise by roughly $1bn year-over-year.
Within the fourth quarter, IBM’s Software program section reported revenues of $9bn, marking a 14% enhance, or 11% at fixed forex in comparison with the earlier yr quarter. This progress was pushed by a number of key areas, with Hybrid Cloud (Purple Hat) rising by 10%, Automation seeing an 18% enhance, Knowledge surging by 22%, and Transaction Processing rising by 8%.
The Consulting section achieved revenues of $5.3bn, reflecting a 3% progress, or 1% at fixed forex. Inside this section, Technique & Know-how skilled a 2% enhance, whereas Clever Operations grew by 5%.
IBM’s Infrastructure section reported revenues of $5.1bn, a 21% enhance, or 17% at fixed forex. This was largely fueled by a 29% rise in Hybrid Infrastructure, with IBM Z displaying a 67% progress.
Distributed Infrastructure noticed a 3% enhance, whereas Infrastructure Assist skilled a 1% progress.
IBM generated $4bn in internet money from working actions through the fourth quarter, with free money move at $7.6bn. On the finish of the quarter, IBM held $14.5bn in money and marketable securities, with whole debt at $61.3bn.
Arvind Krishna, IBM’s chairman, president, and CEO, highlighted the corporate’s strong efficiency in 2025, emphasising a 6% income progress and $14.7bn in free money move, marking important achievements in IBM’s current historical past.
He famous that the corporate is strategically advancing as a software-led hybrid cloud and AI platform, with software program now constituting 45% of its enterprise, up from 25% in 2018. This section noticed a 9% progress, the best annual price in IBM’s historical past, with notable efficiency in IBM Z in 2025, which elevated by 48%.
Krishna acknowledged that IBM’s technique is aligned with the structural traits in expertise investments, specializing in hybrid cloud, AI, and mission-critical infrastructure. These areas are seen as important platforms for enterprise operations, driving productiveness and resilience.
The breadth of IBM’s AI choices, together with its GenAI e-book of enterprise, is a key differentiator, in response to Krishna. The acquisition of Confluent is ready to boost IBM’s hybrid cloud and automation options, offering real-time knowledge worth.
In the meantime, IBM’s productiveness initiatives are mentioned to have resulted in $4.5bn in annual run-rate financial savings, enabling additional funding in innovation and strategic acquisitions.
Krishna highlighted IBM’s deal with natural innovation, exemplified by Challenge Bob, an AI-based software program growth system that enhances developer productiveness. He added that strategic partnerships with main tech firms and developments in quantum computing are additional strengthening IBM’s place.
The corporate is alleged to be on monitor to ship a large-scale, fault-tolerant quantum pc by 2029.
Krishna mentioned: “Within the fourth quarter, we delivered sturdy income progress, with double-digit Software program efficiency. Moreover, Infrastructure continued its double-digit income progress with the strong adoption of the subsequent technology of our mainframe platform.
“Our generative AI e-book of enterprise now stands at greater than $12.5bn. This capped a robust 2025 for IBM the place we exceeded expectations for income, revenue and free money move.
“We enter 2026 with momentum and ready of energy, giving us confidence in our full-year expectations of greater than 5% fixed forex income progress and a rise of about $1bn in year-over-year free money move.”
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