IBM shares surge 10% on earnings beat

Core Insights - IBM reported fourth-quarter earnings that exceeded Wall Street expectations, resulting in a 10% increase in stock price during extended trading, marking the largest rise since March 2020 [1] - The company achieved a net income of $2.92 billion, or $3.09 per diluted share, compared to $3.29 billion, or $3.55 per share, in the same quarter last year [1] - Overall revenue for the quarter rose by 1%, with total annual revenue also increasing by 1% to $62.8 billion [2] Revenue Breakdown - IBM's software segment experienced an 8% growth year-over-year, reaching $7.9 billion, driven by demand for artificial intelligence technology and strong performance from Red Hat Linux [2] - Infrastructure revenue declined by 4%, while consulting revenue dropped by 2% to $5.2 billion in the quarter [2] Future Outlook - CEO Arvind Krishna announced that IBM has secured $5 billion in bookings for its generative AI business, which encompasses sales and future sales in both software and consulting divisions [3] - The company reported adjusted earnings per share of $3.92, surpassing the expected $3.75, with total revenue of $17.55 billion, slightly above the anticipated $17.45 billion [3]