IBM’s mainframe division recorded its strongest fourth-quarter revenue in more than 20 years, posting a 61% year-over-year increase driven by robust demand for its latest z17 systems. Optimized for AI workloads, each z17 unit can process up to 450 billion AI inference operations per day while delivering sub-millisecond latency. CEO Arvind Krishna forecasts that within three to five years, half of all enterprise AI workloads will shift from public clouds back to private data centers, positioning IBM’s mainframes to capture a significant share of the emerging AI inference market and potentially drive double-digit revenue growth in its infrastructure segment.

Effective March 1, 2026, PepsiCo Chairman and CEO Ramon L. Laguarta, 62, will join IBM’s board of directors, bringing nearly four decades of leadership in global consumer goods and digital transformation. Under Laguarta’s tenure since 2018, PepsiCo has implemented a strategic technology-driven transformation that boosted annual organic revenue growth from 3% to 6% and improved operating margins by 150 basis points. IBM Chairman and CEO Arvind Krishna highlighted Laguarta’s experience scaling enterprise technology and driving cultural change as key assets for stewarding IBM’s transition into AI-centric infrastructure and hybrid cloud services.