By GuruFocus News
Publication Date: 2026-01-29 05:01:00
This article first appeared on GuruFocus.
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Revenue Growth: 6% for 2025, highest in many years; 9% in Q4, highest in over three years.
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Free Cash Flow: $14.7 billion in 2025, highest in over a decade.
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Software Revenue: Grew 9% in 2025, highest annual growth rate in history; 11% growth in Q4.
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Infrastructure Revenue: Grew 17% in Q4, driven by z17 performance.
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Consulting Revenue: Grew 1% in Q4, with a generative AI book of business over $10.5 billion.
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Operating Pretax Margin Expansion: 100 basis points in 2025.
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Adjusted EBITDA Growth: 17% in 2025.
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ARR (Annual Recurring Revenue): $23.6 billion, up over $2 billion from 2024.
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Operating Gross Profit Margin: Highest in reported history for 2025.
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Debt Balance: $61.3 billion at year-end 2025.
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Cash Position: $14.5 billion at year-end 2025.
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Dividends Returned to Shareholders: $6.3 billion in 2025.
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2026 Revenue Growth Expectation: 5%-plus in constant currency.
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2026 Free Cash Flow Growth Expectation: Up about $1 billion year over…