IBM surpassed fourth-quarter profit estimates on Wednesday, driven by robust demand in its software unit as businesses ramped up IT spending, sending the company's shares soaring about 10% in extended trading.

IBM reported fourth-quarter earnings on Wednesday that topped Wall Street expectations for earnings and revenue. The shares rose in extended trading. It's the largest rise in IBM's stock price since March 2020.

Adjusted per-share earnings came ahead of Wall Street estimates.

IBM surpassed analysts' estimates for fourth-quarter profit on Wednesday, driven by demand in its high-margin software unit as businesses ramped up IT spending. The company's software segment recorded its biggest revenue jump in five years,

IBM reported its Q4 2024 earnings results via its investor relations website this week. For EPS, IBM put up a final tally of $3.92 per share, adjusted, versus the analyst expectations, which expected $3.75 per share. Meanwhile, revenue at the company came out to $17.55 billion for Q4 2024, which was just a hair above the $17.54 billion expected.

IBM Corp. met analysts’ revenue estimates in the fourth quarter, but investors chose to focus on profit and a strong 2025 forecast, sending shares up nearly 9% in after-hours trading. Revenue rose 2% on a constant currency bases,

IBM stock popped as Q4 earnings and revenue topped Wall Street estimates while 2025 revenue guidance came in above expectations.