International Business Machines Corp. (IBM) has provided an optimistic revenue growth outlook that has exceeded market expectations, primarily driven by the expansion of its software business. During a presentation on February 4th, IBM's Chief Financial Officer Jim Kavanaugh announced that the company anticipates long-term sales to grow by more than 5% annually. This forecast surpasses the average analyst projection of approximately 4% growth in constant currency for fiscal years 2026 and 2027. The announcement highlights IBM's strategic focus on its software segment as a key driver of future growth.
IBM's positive outlook has resonated well with investors, as evidenced by the stock's performance. IBM shares closed at $264.46 on February 4th, marking a 1.43% increase from the previous close of $260.73 on February 3rd. After the market closed, the stock saw a further uptick of 0.35%, reaching $265.38.