IBM Stock Jumps on Better-Than-Estimated Results, Open-Source AI Strategy

Core Insights - IBM shares increased nearly 8% in premarket trading following the release of fourth-quarter results that exceeded analysts' expectations, driven by a surge in its artificial intelligence (AI) business [2][4] - The company reported adjusted earnings per share (EPS) of $3.92, surpassing the consensus estimate of $3.79, and revenue of $17.55 billion, slightly above expectations [2][4] Financial Performance - IBM's fourth-quarter adjusted EPS was $3.92, exceeding the Visible Alpha consensus of $3.79 [2][4] - Revenue for the quarter was reported at $17.55 billion, marginally higher than analysts' expectations [2][4] AI Business Growth - The generative AI business has seen significant growth, with the total book of business now exceeding $5 billion, an increase of nearly $2 billion quarter over quarter [3][4] - CEO Arvind Krishna emphasized that IBM's AI products offer clients a consistent and scalable AI foundation based on open-source technology [3]