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IBM reported strong Q4 2025 results with mainframe revenue reaching a 20-year high, driven by the z17 series launch. The company accumulated $12.5 billion in GenAI business and achieved $4.5 billion in annual productivity savings. IBM is positioning AI-powered tools like Watson Code Assistant to modernize COBOL codebases by refactoring to Java, while emphasizing mainframes as cost-effective platforms for AI workloads with millisecond latency when processing transactions inline.

IBM says AI is insane in the mainframe as z17 sales surge