Investors rallied behind International Business Machines’ artificial-intelligence strategy, driving the stock up after the company released its latest quarterly earnings Wednesday. The tech company said it has taken an open-innovation approach to artificial intelligence,

IBM reported its Q4 2024 earnings results via its investor relations website this week. For EPS, IBM put up a final tally of $3.92 per share, adjusted, versus the analyst expectations, which expected $3.75 per share. Meanwhile, revenue at the company came out to $17.55 billion for Q4 2024, which was just a hair above the $17.54 billion expected.

The shares rose 10% in extended trading. It's the largest rise in IBM's stock price since March 2020. Here's how the company did versus LSEG consensus expectations:

In a statement, IBM CEO Arvind Krishna said the company has recorded $5 billion in bookings for its generative AI business.

IBM surpassed fourth-quarter profit estimates on Wednesday, driven by robust demand in its software unit as businesses ramped up IT spending, sending the company's shares soaring about 10% in extended trading.

For the December quarter, the technology company reported earnings of $3.92 a share versus the consensus estimate of $3.78 a share.

IBM surpassed analysts' estimates for fourth-quarter profit on Wednesday, driven by demand in its high-margin software unit as businesses ramped up IT spending, sending its shares soaring about 10% in extended trading.