IBM Reported 4Q Results (12/25/25) and G-255 Trade Indicators for January 28, 2026

Once upon a time IBM was as dominant a Tech equity as Microsoft is today. Unfortunately, I was in the investment business back then as well as well. Several iterations later IBM is remaking itself, yet again.

IBM reported fourth-quarter 2025 revenue of $19.69 billion, up 12% year-over-year (9% in constant currency), driven by double-digit growth in Software (including strong performance from automation, data, AI, and Red Hat) and Infrastructure, while operating income also increased amid continued hybrid cloud and AI investments. The company generated free cash flow of $6.2 billion for the quarter (with full-year 2025 free cash flow of $14.7 billion), supporting returns to shareholders through $1.5 billion in dividend payments under its ongoing quarterly dividend program (with no share repurchases).

IBM has almost $8 billion of debt coming due in the next 2½ years but is trimming net debt QoQ and YoY. G-255 indicators are long credit/equity.

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