IBM reported a 61% year-over-year increase in fourth-quarter revenue from its mainframe division, marking its strongest Q4 performance since 2005. The surge was driven by demand for its latest z17 systems, which are optimized for artificial intelligence workloads. IBM highlighted that a single z17 machine can process up to 450 billion AI inferencing operations per day while maintaining sub-1 millisecond response times. CEO Arvind Krishna forecasts that within three to five years, half of enterprise AI workloads will move from public cloud platforms back to private data centers, positioning IBM’s mainframes to capture a significant share of the AI inference market.

Effective March 1, 2026, Ramon L. Laguarta, chairman and CEO of PepsiCo since 2018, joined IBM’s board of directors. Laguarta, 62, will lend his experience in leading large-scale digital transformations and technology integrations. Under his tenure, PepsiCo executed a portfolio restructuring and cultural overhaul that strengthened global revenue growth and operational efficiency. IBM chairman and CEO Arvind Krishna praised Laguarta’s track record in scaling technology across complex enterprises, noting that his strategic insights will help drive long-term value for IBM shareholders.