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IBM Posts Best Sales Growth in 10 Years on Cloud Demand

  • Revenue rose 6.5% to $16.7 billion during the fourth quarter
  • The results are the first since the Kyndryl spinoff finalized
IBM offices in Foster City, California.

IBM offices in Foster City, California.

Photographer: David Paul Morris/Bloomberg
Updated on

International Business Machines Corp. reported revenue that beat analysts’ estimates, buoyed by strong demand in the software unit, which includes IBM’s hybrid-cloud offering, signaling that the company’s efforts to transform the 110-year-old tech giant are bearing fruit.

Sales rose 6.5% to $16.7 billion in the three months ending Dec. 31, the Armonk, New York-based technology company said Monday in a statement. It was the biggest increase in at least 10 years. Analysts were expecting $16 billion, on average, according to data compiled by Bloomberg. The stock jumped as much as 7.5% in extended trading before giving up much of the gains.