Overview
- IBM reported Q4 revenue of $19.69 billion and adjusted EPS of $4.52, topping LSEG estimates on both measures.
- Free cash flow reached $14.7 billion in 2025, with guidance calling for roughly $1 billion more in 2026.
- The generative AI book of business exceeded $12.5 billion, and consulting booked over $2 billion in GenAI work during the quarter.
- Software revenue rose 14% to about $9 billion and infrastructure climbed 21% to $5.1 billion, including a 67% surge in IBM Z mainframes.
- Red Hat hybrid-cloud growth slowed to 10%, which the CFO linked to a U.S. federal government shutdown knocking growth by a couple of points, while shares rose roughly 8% after the release.