IBM Posts Revenue That Tops Estimates on Software Gains

IBM offices in Foster City, California.Photographer: David Paul Morris/Bloomberg

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By Brody Ford

January 28, 2026 at 9:10 PM UTC

Updated on

January 28, 2026 at 11:39 PM UTC

International Business Machines Corp. reported quarterly sales that topped analysts’ estimates on strong growth for its closely watched software unit.

Revenue increased 12% to $19.7 billion in the fourth quarter, the company said Wednesday in a statement. Analysts, on average, projected $19.2 billion. The largest chunk of revenue came from IBM’s software business, which jumped 14% to $9.03 billion, also above estimates.