Q4 25 EPS
$4.52
BEAT +5.36%
Est. $4.29
Q4 25 Revenue
$19.69B
BEAT +2.57%
Est. $19.19B
vs S&P Since Q4 25
-30.1%
TRAILING MARKET
IBM -26.2% vs S&P +3.8%
Full Year 2025 Results
FY 25 EPS
$11.59
BEAT +2.11%
Est. $11.35
FY 25 Revenue
$67.54B
BEAT +0.74%
Est. $67.04B
Market Reaction
Did IBM Beat Earnings? Q4 2025 Results
IBM closed out 2025 with a standout fourth quarter, beating Wall Street expectations on both the top and bottom lines as robust demand for software and mainframe infrastructure drove broad-based growth. The company posted Q4 earnings per share of $4.… Read more IBM closed out 2025 with a standout fourth quarter, beating Wall Street expectations on both the top and bottom lines as robust demand for software and mainframe infrastructure drove broad-based growth. The company posted Q4 earnings per share of $4.52, clearing the $4.29 consensus estimate by 5.36%, while revenue climbed 12.2% year over year to $19.69 billion, ahead of the $19.19 billion analysts had anticipated. The single most compelling driver behind the outperformance was a 67% surge in IBM Z mainframe revenue, which powered the Infrastructure segment to 21% growth and underscored the durability of IBM's hardware refresh cycle. Software was equally impressive, with Data products up 22% and Automation up 18%, while IBM's generative AI book of business crossed $12.50 billion on an inception-to-date basis, signaling meaningful commercial traction. Operating gross margin expanded 120 basis points to 61.8%, and full-year free cash flow reached $14.73 billion. Looking ahead, IBM expects constant currency revenue growth of more than 5% in 2026, with free cash flow increasing by roughly $1.00 billion year over year.
Key Takeaways
- • Double-digit Software revenue growth led by Data (up 22%) and Automation (up 18%)
- • IBM Z mainframe revenue surged 67% driven by next-generation platform adoption
- • Operating gross profit margin expanded 120 basis points to 61.8%
- • Generative AI book of business exceeded $12.5 billion
- • Portfolio mix shift toward higher-margin Software and Infrastructure
IBM YoY Financials
Q4 2025 vs Q4 2024, source: SEC Filings
IBM Revenue by Segment
With YoY comparisons, source: SEC Filings
“In the fourth quarter, we delivered strong revenue growth, with double-digit Software performance. Additionally, Infrastructure continued its double-digit revenue growth with the robust adoption of the next generation of our mainframe platform. Our generative AI book of business now stands at more than $12.5 billion. This capped a strong 2025 for IBM where we exceeded expectations for revenue, profit and free cash flow. We enter 2026 with momentum and in a position of strength, giving us confidence in our full-year expectations of more than 5 percent constant currency revenue growth and an increase of about $1 billion in year-over-year free cash flow.”
— Arvind Krishna, Q4 2025 Earnings Press Release
IBM Earnings Trends
IBM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
IBM EPS Trend
Earnings per share: estimate vs actual
IBM Revenue Trend
Quarterly revenue: estimate vs actual
IBM Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $1.91 | — | $15.92B | +1.70% |
| Q4 25 BEAT FY | $4.29 | $4.52 | +5.36% | $19.69B | +2.57% |
| FY Full Year | $11.35 | $11.59 | +2.11% | $67.54B | +0.74% |
| Q3 25 BEAT | $2.45 | $2.65 | +8.31% | $16.33B | +1.45% |
| Q2 25 BEAT | $2.65 | $2.80 | +5.47% | $16.98B | +2.32% |
| Q1 25 BEAT | $1.43 | $1.60 | +12.04% | $14.54B | +1.05% |