IBM's stock surged over 12% following a strong fourth-quarter earnings report, driven by the company's booming software business fueled by artificial intelligence.
IBM experienced a significant surge of 12% in its stock value following the release of its robust fourth-quarter financial results. This impressive performance was fueled by the burgeoning growth of artificial intelligence, which propelled its software business to new heights. This rally propelled the stock to its best day since July 20, 2000, when it witnessed a 13% surge. The company reported adjusted earnings of $3.92 per share on revenue of $17.
55 billion after the market closed on Wednesday. These figures surpassed the analysts' expectations, who predicted earnings of $3.75 per share and revenues of $17.54 billion, according to LSEG.IBM reported a 1% overall increase in revenues, while its software segment demonstrated a remarkable 10% year-over-year growth, driven by the escalating demand for artificial intelligence and its operating system, Red Hat Linux. CEO Arvind Krishna highlighted the company's strong performance in the generative AI segment, revealing that they secured $5 billion in bookings. 'We closed the year with double-digit revenue growth in Software for the quarter, led by further acceleration in Red Hat,' Krishna stated in a press release. 'Clients globally continue to turn to IBM to transform with AI.'While JPMorgan analyst Brian Essex maintained a neutral rating on IBM, he expressed encouragement regarding the company's software strength and its positive growth trajectory. Goldman Sachs analyst James Schneider, on the other hand, reiterated a buy rating, emphasizing that the robust performance in the software sector should significantly benefit IBM's overall turnaround plan.
IBM Artificial Intelligence Software Stock Market Red Hat Linux
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ResMed Stock Soars on Potential OSA Surge Fueled by GLP-1 and WearablesBank of America analyst Lyanne Harrison reports a 36% increase in potential OSA patients, driven by weight loss drugs and wearables. This trend, coupled with GLP-1 drug use reducing CPAP reliance, presents both challenges and opportunities for ResMed.
Read more »
IBM Stock Soars 13% on Strong Q4 Earnings and AI BookingsInternational Business Machines (IBM) stock reached its highest point in over a decade following its fourth-quarter earnings report, driven by impressive AI bookings and software revenue growth. The company exceeded earnings expectations and witnessed a significant increase in AI bookings, fueling optimism among analysts.
Read more »
Stock Market Soars on Speculation and Meme Stock BuzzThe stock market opened 2025 with a bang, driven by speculation and the resurgence of meme stocks. Roaring Kitty's cryptic tweets fueled excitement, while semiconductor stocks continued their upward trend. The market's surge mirrors the initial rallies following Donald Trump's election victory in 2024.
Read more »
IBM Exceeds Revenue Expectations, Fueled by AI Demand and Red Hat GrowthIBM reports strong revenue growth for Q4 2022, driven by its software segment and increased demand for AI solutions. The company also forecasts positive growth for 2023 and beyond.
Read more »
Stock Futures Decline After Record S&P 500 Surge Fueled by Trump's Economic DemandsStock futures dipped Thursday, following the S&P 500's record close, which was driven by President Trump's calls for lower interest rates and oil prices. While investors initially reacted positively to Trump's pro-business policies, concerns about the lack of concrete action from his administration emerged.
Read more »
Online Spending Soars During Holiday Season Fueled by Discounts and Event-ized BuyingOnline spending surged 8.7% during the November-December holiday season, driven by consumers seeking out deals and embracing 'event-ized buying,' according to Adobe Analytics. Grocery and cosmetics saw the biggest year-over-year growth, with Adobe's data revealing a total of $241.4 billion spent online during the period.
Read more »