This article first appeared on GuruFocus.

International Business Machines (NYSE:IBM) shares surged about 9% on Thursday after the company posted fourth-quarter results and 2026 guidance that topped Wall Street expectations.

IBM reported fourth-quarter revenue of $19.69 billion, beating consensus estimates, while adjusted earnings came in at $4.52 per share, also ahead of forecasts. The results reflect growing demand for software tools tied to artificial intelligence adoption across enterprises.

Software revenue reached $9.03 billion in the quarter, driven by double-digit growth in automation and data platforms. Infrastructure revenue also posted double-digit gains, supported by strong uptake of IBM’s next-generation…