INTERNATIONAL BUSINESS MACHINES (IBM) Company Report

IBM priced a $3.25 billion offering of USD notes: $500 M 4.00% due 2029; $500 M 4.30% due 2031; $500 M 4.60% due 2033; $1 billion 4.95% due 2036; and $750 M 5.80% due 2056.
The notes were underwritten by Citigroup, BNP Paribas, Deutsche Bank, Goldman Sachs, HSBC, Merrill Lynch, Mizuho, CIBC, Société Générale, TD Securities, Academy Securities and Cabrera Capital Markets, with settlement on February 3, 2026.
Issue purchase prices ranged from 99.322% to 99.844% of principal (offering prices from 99.566% to 100%), plus accrued interest.
No sinking fund provisions; each series is redeemable at IBM’s option as detailed in the prospectus supplement.

2 days ago

8-K

IBM reports Q4 2025 results

IBM

Earnings

Guidance Update

Q4 total revenue grew 9%, driven by software up 11%, data 19%, automation 14%, consulting 1%, and infrastructure 17% growth.
Full-year 2025 results exceeded targets: revenue + 6%, operating pre-tax margin + 100 bps, Adjusted EBITDA + 17%, free cash flow $14.7 billion (+ 16% YoY), and operating EPS + 12%.
Software annual recurring revenue reached $23.6 billion, up over $2 billion YoY, with organic software growth above 7% and three of four subsegments in double digits.
Cumulative GenAI book of business surpassed $12.5 billion, including over $2 billion in software and $10.5 billion in consulting.
Mainframe momentum continued: IBM Z (z17) revenue was up 61% in Q4—the highest fourth-quarter performance in over two decades—and hybrid infrastructure grew 24%.

7 days ago

Transcript

IBM announces Q4 2025 earnings results

IBM

Earnings

Guidance Update

$19.7 billion Q4 revenue, up 9% at constant currency (12% reported)
Software segment Q4 revenue of $9.0 billion, up 11% CC, with ARR at $23.6 billion
Generative AI book of business reached over $12.5 billion in 2025, driving AI offerings momentum
FY 2025 free cash flow of $14.7 billion (+16%) and adjusted EBITDA growth of 17%
2026 guidance: >5% CC revenue growth, Software growth accelerating to 10%, and ~$1 billion incremental free cash flow

7 days ago

Presentation

IBM delivers strong Q4 2025 results

IBM

Earnings

Guidance Update

M&A

Q4 revenue rose 9% Y/Y, led by software growth of 11%, with data up 19% and automation up 14%; consulting grew 1% and infrastructure increased 17%, driven by IBM Z’s 61% Q4 surge—the highest fourth-quarter Z revenue in over two decades.
Full-year 2025 performance included 6% revenue growth, 100 bps operating pre-tax margin expansion, 17% adjusted EBITDA growth, $14.7 billion free cash flow (+16%), and 12% operating diluted EPS growth.
For 2026, IBM targets constant-currency revenue growth of 5%+, software growth of 10%, operating pre-tax margin expansion of 1 point, and free cash flow up about $1 billion (high single digits).
IBM expects to close the Confluent acquisition by mid-2026 with roughly $600 million of dilution in 2026, aiming for Adjusted EBITDA accretion in the first full year, free cash flow accretion in year two, $500 million of operational synergies by end-2027, and $1 billion of productivity savings in 2026 (driving a $5.5 billion run rate).

7 days ago

Transcript

IBM reports Q4 2025 results

IBM

Earnings

Guidance Update

M&A

IBM delivered 9% total revenue growth in Q4 2025, led by 11% software, 17% infrastructure, and 1% consulting growth.
For full-year 2025, 6% revenue growth was driven by 9% software and 10% infrastructure, with $14.7 billion in free cash flow, the highest in over a decade.
Operating margins improved significantly in 2025: operating gross profit margin up 170 bps, adjusted EBITDA margin up 230 bps, and operating pre-tax margin up 100 bps.
2026 guidance targets 5%+ revenue growth, ~$1 billion free cash flow increase, 10% software growth, with the Confluent acquisition expected mid-2026.

7 days ago

Transcript

IBM posts Q4 2025 earnings beat

IBM

Earnings

M&A

Guidance Update

IBM reported Q4 revenue of $19.69 billion and adjusted EPS of $4.52, beating expectations and sending shares up ~6–8% in after-hours trading.
Its generative AI book of business topped $12.5 billion, marking a shift from pilot projects to substantial signed enterprise AI deals.
For fiscal 2025, free cash flow reached $14.7 billion, underlining strong cash generation heading into 2026.
IBM completed a $6.4 billion acquisition of HashiCorp and is pursuing an ~$11 billion deal for Confluent to bolster AI capabilities.
Management expects mid-single-digit revenue growth in constant currency and roughly $1 billion more free cash flow in 2026.

7 days ago

WSJ

IBM reports Q4 2025 results

IBM

Earnings

Guidance Update

Revenue of $19.7 billion, up 12% (9% constant currency), driven by software (+14%/11% cc) and infrastructure (+21%/17% cc) growth.
GAAP gross profit margin of 60.6% (+110 bps) and non-GAAP margin of 61.8% (+120 bps); GAAP EPS of $5.86 per share.
Operating cash flow of $4.0 billion and free cash flow of $7.6 billion in Q4.
For full-year 2025, revenue of $67.5 billion, up 8% (6% cc), and free cash flow of $14.7 billion.
2026 guidance: expects >5% constant currency revenue growth and roughly +$1 billion year-over-year free cash flow.

7 days ago

8-K

IBM releases fourth-quarter 2025 results

IBM

Earnings

Guidance Update

Dividends

Q4 revenue of $19.7 billion, up 12% year over year; Software revenue rose 14%, Consulting 3%, Infrastructure 21%
Generative AI book of business now exceeds $12.5 billion, underscoring strong AI momentum
Fourth-quarter net cash from operations of $4.0 billion and free cash flow of $7.6 billion; returned $1.6 billion to shareholders in dividends
Board declared a regular quarterly dividend of $1.68 per share, payable March 10, 2026
2026 outlook: expects > 5% constant-currency revenue growth and ~ $1 billion increase in free cash flow

7 days ago

Press Release

ASML reports Q4 2025 and full-year 2025 results

IBM

Earnings

Guidance Update

Share Buyback

For Q4, ASML recorded €9.7 billion in total net sales and €2.8 billion in net income, with a gross margin of 52.2%.
For full-year 2025, ASML achieved €32.7 billion in total net sales and €9.6 billion in net income, with a gross margin of 52.8%.
ASML ended 2025 with a backlog of €38.8 billion and reported net bookings of €13.2 billion in Q4.
For 2026, ASML expects total net sales between €34–39 billion and a gross margin of 51–53%, and Q1 sales of €8.2–8.9 billion.
The company announced a new €12 billion share buyback program through 2028 and proposed a €7.50 dividend per share for 2025, up 17%.

8 days ago

Press Release

IBM and e& unveil enterprise-grade agentic AI for governance and compliance

IBM

Product Launch

New Projects/Investments

IBM partners with e& to deploy an enterprise-grade agentic AI solution for policy, risk and compliance, announced at the World Economic Forum in Davos.
The solution is built on IBM watsonx Orchestrate integrated with IBM OpenPages, embedding AI agents into core governance workflows; a proof of concept by IBM, GBM and e& was delivered in eight weeks.
e& reported AED 59.2 billion in consolidated revenue and AED 10.8 billion in net profit in 2024, highlighting its financial scale for advanced AI adoption.

Jan 19, 2026, 12:30 PM

Press Release