IBM Shares Jump on Strong Sales Outlook and AI Bookings
- Software business revenue gained 10%, fueled by Red Hat
- IBM gives a forecast for free cash flow that tops estimates
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Shares of International Business Machines Corp. surged after the company projected strong revenue growth in the new fiscal year and a jump in AI-related bookings.
For the fiscal year ending in December 2025, Big Blue said it expects $13.5 billion in free cash flow. That’s above the $12.9 billion anticipated by Wall Street. Revenue will expand at least 5% in constant currency, although current exchange rates would dent that expansion by two percentage points, the company said Wednesday in a statement.