International Business Machines reported fourth-quarter non-GAAP EPS of $4.52, outpacing consensus estimates by $0.19, while revenue rose 12.2% year-over-year to $19.69 billion. The company delivered its strongest constant-currency revenue growth in over three years, driven by a double-digit increase in its Software segment and high-teens growth in Infrastructure. Management reaffirmed guidance for over 5% constant-currency revenue growth in fiscal 2026 and expects free cash flow to exceed $15 billion, reflecting anticipated improvements in working capital and benefits from recent divestitures.

Following the earnings release, IBM shares experienced a notable intraday jump, prompting passive and active ETF managers with heavyweight positions to adjust their allocations. ETFs such as the Global Technology ETF and the Artificial Intelligence & Technology Opportunities ETF, which each allocate more than 3% of their assets to the technology giant, saw inbound flows totaling over $150 million in the two trading days after the report. Analysts tracking fund flows highlight that exposure to IBM now accounts for roughly 2.8% of the average large-cap technology ETF portfolio, up from 2.4% at the start of the quarter.

Pettee Investors Inc. increased its stake in IBM by 14.3% during the latest 13F period, acquiring an additional 2,114 shares to reach 16,933 shares, representing 2.6% of its total holdings valued at $4.78 million. Other hedge funds, including Winnow Wealth LLC and Mountain Hill Investment Partners, initiated new positions in shares valued between $27,000 and $28,000. On the insider front, Director David N. Farr purchased 1,000 shares on January 30, raising his total to 9,258 shares—a 12.1% boost—underscoring confidence in the company’s growth trajectory and cash-return strategy.