IBM Shares Soar 8% on Strong Software Sales, Exceeding Revenue Forecasts

• IBM's shares surged 8% in extended trade after its software business led a significant revenue beat in the fourth quarter.
• Quarterly revenue rose 12% to $19.7 billion, surpassing analysts' average estimate of $19.2 billion.
• The software division's revenue increased by 14% to $9.03 billion, exceeding projections and contributing the largest portion of total revenue.
• IBM's strategy to focus on high-growth software through acquisitions like Red Hat, HashiCorp, and Confluent is paying off.
• The company projects over 5% revenue growth in 2026 and free cash flow exceeding $15.7 billion, driven by strong AI division reservations.

Why It Matters: IBM's strategic focus on high-growth software and AI is driving significant revenue and stock growth.