IBM surges on surprisingly strong software growth and upbeat outlook

What happened

IBM beat estimates and showed faster software growth, helping shift the narrative toward “software-led + AI monetisation + improving margins” for legacy tech.

Winners

Enterprise software and IT workflow platforms

IBM’s software strength suggests enterprise spending is holding up, and markets may reward recurring revenue + pricing power.

Names: $IBM (IBM), $ORCL (Oracle), $NOW (ServiceNow)

AI implementation and consulting services

If more companies move from “AI pilots” to “production,” services firms win on integration, data cleanup, security, and change management.

Names: $ACN (Accenture), $EPAM (EPAM Systems)

Enterprise infrastructure and data centre refresh beneficiaries