By Reuters
Publication Date: 2026-01-28 21:12:00
Jan 28 (Reuters) – IBM beat Wall Street estimates for fourth-quarter revenue and profit on Wednesday, as the rapid adoption of AI boosts demand for its software services, ranging from managing vast amounts of data to automating IT processes.
Shares of the company rose nearly 9% in extended trading.
Businesses have doubled down on upgrading their software suites to develop data-intensive artificial intelligence technology, helping sales for IT service and software providers such as IBM.
Big Blue reported December quarter revenue of $19.69 billion, beating analysts’ average estimate of $19.23 billion, according to data compiled by LSEG.
Adjusted earnings of $4.52 per share also beat an estimate of profit of $4.32 per share.
IBM has been boosting its software portfolio, turning to inorganic growth to better address the requirements of companies adopting AI, with deals like its $6.4 billion acquisition of HashiCorp and ongoing $11 billion buyout of…