IBM (NYSE:IBM) Q3 2025 Earnings Call October 22, 2025 05:00 PM ET Speaker0Welcome and thank you for standing by. At this time, all participants are in a listen only mode. Today's conference is being recorded. If you have any objections, you may disconnect at this time. Now I will turn the meeting over to Olympia McNurney, IBM's Global Head of Investor Relations.Olympia, you may begin.Speaker1Thank you. I'd like to welcome you to IBM's third quarter twenty twenty five earnings presentation. I'm Olympia McNer ...

Core Insights - IBM's latest earnings report shows that while free cash flow exceeded expectations, the slowdown in Red Hat's growth has raised deep concerns in the market [1][4][5] Financial Performance - Total revenue for Q3 reached $16.3 billion, a year-over-year increase of 9.1%, with adjusted earnings per share at $2.65, surpassing analyst expectations of $2.41 [4] - The hybrid cloud segment, which includes Red Hat, saw revenue growth of 14%, falling short of the previous quarter's growth and below the analyst forecast of 16%, raising doubts about IBM's growth engine [4][5] - AI business orders have accumulated to $9.5 billion since mid-2023, but 80% of these orders come from the lower-margin consulting segment, with only 20% from the software segment [7][8] Red Hat's Performance - Red Hat is considered a core pillar of CEO Arvind Krishna's strategy to make software IBM's largest business segment, especially as the consulting segment faces challenges due to economic concerns [5] - The mixed cloud segment's revenue growth of 14% appears strong but is a significant slowdown compared to the previous quarter and below analyst expectations [5][6] Consulting and Software Segments - Consulting revenue grew by only 3.3% to $5.32 billion, just meeting expectations, indicating a lack of robust growth [9] - In contrast, the software segment's revenue increased by 10% to $7.21 billion, meeting expectations but lacking excitement [10] Infrastructure Performance - The infrastructure segment's revenue surged by 17% to $3.56 billion, primarily driven by sales of the new z17 mainframe servers, although this growth is considered cyclical and its sustainability is questioned [10]

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IBM saw growth decelerate in its Red Hat business, which analysts see as a major focus for investors. ...

IBM earnings are out. Let me get you those numbers. Uh the results are a beat on the top and bottom lines.You see the stock moving lower. I'll tell you why that might be in just a moment. Guidance raised for Q4 uh in effect because a full year is raised.So there's an asterisk on the beat. Get to that in a moment. But revenue beat at 16.33% billion versus 169 consensus.The upside though did not come from software overall. Software at 7.21%. 21 billion in line with consensus.Consulting though did beat at 5.32 ...

So we have Alcoa report reporting as well. Uh slightly smaller than expected adjusted loss a miss on revenue adjusted Ebida down 14% versus last quarter. The company seeing increased tariff costs unfavorable currency impacts playing a factor there.Trade policy also impacting guidance. Tariff costs on higher US imports of aluminum from Canada are expected to increase by approximately $50 million sequentially quote unquote. And we're going to dig more into the quarter in a first on CNBC interview coming up ri ...

IBM earnings are out. Let me get you those numbers. Uh the results are a beat on the top and bottom lines.You see the stock moving lower. I'll tell you why that might be in just a moment. Guidance raised for Q4 uh in effect because a full year is raised.So there's an asterisk on the beat. Get to that in a moment. But revenue beat at 16.33% billion versus 169 consensus.The upside though did not come from software overall. Software at 7.21%. 21 billion in line with consensus.Consulting though did beat at 5.32 ...

3Q 2025 Earnings October 22, 2025 ibm.com/investor Forward-looking statements and non-GAAP information In an effort to provide additional and useful information regarding the company's financial results and other financial information as determined by generally accepted accounting principles (GAAP), the company also discusses, in its earnings press release and presentation materials, certain non-GAAP information including operating earnings and other "operating" financial measures, free cash flow, net cash ...

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Chairman, President and CEO of IBM Arvind Krishna attends the 55th annual World Economic Forum meeting in Davos, Switzerland, on Jan. 22, 2025.IBM reported third-quarter results that topped Wall Street estimates and lifted its guidance, citing ongoing artificial intelligence tailwinds. Still, the stock dropped 5% in extended trading. Here's how the company performed versus LSEG estimates:Earnings per share: $2.65 adjusted vs. $2.45 expectedRevenue: $16.33 billion vs. $16.09 billion expected.Revenue increase ...