IBM reported revenue of $19.7 billion in the fourth quarter of 2025, up 12% from a year earlier, driven mainly by gains in software and infrastructure, according to the company’s earnings release.
Software revenue grew 14% to $9 billion, while infrastructure revenue increased 21% to $5.1 billion. Consulting revenue grew 3% to $5.3 billion. At constant currency, total revenue was up 9%.
“We enter 2026 with momentum and in a position of strength, giving us confidence in our full-year expectations of more than 5% constant currency revenue growth and an increase of about $1 billion in year-over-year free cash flow,” said Arvind Krishna, chair, president and CEO of IBM.
Gross profit margin for the quarter grew to 60.6% under GAAP standards. Net income from continuing operations was $5.6 billion, supported in part by a tax-related benefit.
For the full year, IBM reported revenue of $67.5 billion, up 8%, or 6% at constant currency. Software revenue increased 11% for the year, infrastructure grew 12%, and consulting was up 2%. Net cash from operating activities reached $13.2 billion, while free cash flow totaled $14.7 billion.
“2025 put IBM’s durability, resilience and differentiation on display. Our portfolio mix, integrated value and rapid innovation drove higher revenue growth and double-digit profit and free cash flow growth,” said James Kavanaugh, SVP and CFO, IBM. “We are excited about our prospects for 2026 as our disciplined execution and unwavering focus on productivity will continue to enable us to invest in the future while returning value to shareholders.”
IBM expects constant currency revenue growth of more than 5% in 2026 and an increase of about $1 billion in free cash flow compared with 2025.