IBM: What’s Powering the Explosive Growth of Red Hat and OpenShift Right Now?

IBM, or International Business Machines Corporation, exhibited a strong performance in 2025, underscored by a diverse portfolio and strategic realignment towards becoming a software-led, hybrid cloud, and AI platform company. The company reported a 6% revenue growth, marking its highest revenue increase in several years, along with generating $14.7 billion in free cash flow, the highest in over a decade. Significant year-over-year progress in Software, Infrastructure, and Consulting segments contributed to these outcomes, supported by consistent execution of the strategic investments laid out earlier in the year. Positively, IBM achieved substantial growth in its Software segment, which now constitutes approximately 45% of the company’s business. Software registered a 9% growth, with significant contributions from its Automation and Data subsegments, reflecting increasing client demand for productivity tools, AI solutions, and hybrid cloud services.