International Business Machines Corp. (IBM) reported its fourth-quarter earnings, surpassing analyst expectations. The company achieved revenue of $17.55 billion, slightly above the estimated $17.54 billion, marking a 0.99% increase year-over-year. Earnings per share (EPS) reached $3.92, beating the forecast of $3.78 and showing a 1.29% year-over-year growth. IBM's stock surged by 14% following the announcement, marking its best trading day since the turn of the century. The company's software segment saw double-digit revenue growth in the quarter, driven by an acceleration in Red Hat, while its generative AI business reached $5 billion, up from $3 billion in the third quarter. IBM's CEO highlighted the role of AI in boosting software performance, and the company provided a strong outlook for 2025, expecting at least 5% revenue growth at constant currency and a free cash flow of $13.5 billion.