By Geoffrey Seiler
Publication Date: 2026-02-01 23:35:00
IBM has become a strong play on AI and quantum computing.
Shares of IBM (IBM 0.82%) climbed after the company reported stronger-than-expected results for the fourth quarter and issued upbeat guidance. The stock is up about 35% over the past year, as of this writing.
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AI driving growth
IBM’s growth is being driven by artificial intelligence (AI). Customers are now using its mainframes to help run AI inference, while its watsonx software platform is being used for AI governance and Red Hat OpenShift is being deployed to run AI in multicloud environments. Meanwhile, customers are turning to the company for consulting to help them move AI programs from pilots into production.
This helped IBM grow its revenue by 12%, or 9% in constant currencies, in the fourth quarter to $19.69 billion, topping the $19.23 billion consensus, as compiled by LSEG. Adjusted earnings per share (EPS), meanwhile, rose 15% to $4.52, besting analyst estimates of $4.32.
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