Financial Performance Highlights - IBM's revenue grew by over 7% year-over-year[14] - Adjusted EBITDA increased by 22%[14] - Operating earnings per share grew by 15%[14] - Free cash flow year-to-date grew by 9%[14] - The company is raising its full-year free cash flow outlook to approximately $14 billion[22] Segment Performance - Software revenue increased by 9%, with Automation growing by 22% and Hybrid Cloud by 12%[16] - Infrastructure revenue increased by 15%, driven by a 59% increase in IBM Z revenue[18] - Consulting revenue increased by 2%[20], with over $1.5 billion in GenAI bookings in the quarter[19] Key Metrics and Outlook - The GenAI book of business now exceeds $9.5 billion[11] - The company is raising revenue growth expectations to over 5%[22] - Adjusted EBITDA growth is expected to be in the mid-teens[22]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - IBM reported third-quarter results that exceeded Wall Street estimates, driven by ongoing artificial intelligence tailwinds, but the stock dropped 5% in extended trading [1] - The company raised its revenue guidance, now expecting more than 5% revenue growth, and projected free cash flow for the year to reach $14 billion [2] Financial Performance - Revenue increased by 9% to approximately $16.33 billion compared to about $15 billion in the same period last year [1][5] - Net income was reported at $1.74 billion, or $1.84 per share, a significant recovery from a loss of $330 million, or 36 cents per share, a year earlier [1] - Earnings per share were adjusted to $2.65, surpassing the expected $2.45 [5] Business Segments - IBM's AI book of business has grown to over $9.5 billion, up from $7.5 billion in the previous quarter [3] - Software revenue rose by 10% to $7.21 billion, meeting market estimates, while consulting revenue totaled $5.3 billion, exceeding projections [3] - Infrastructure revenue, which includes mainframe computers, increased by 17% to $3.6 billion [4] Dividends - The board approved a quarterly dividend of $1.68 per share [4]

Core Insights - IBM reported increased revenue in the third quarter, indicating a shift from experimentation to scaling artificial intelligence in customer businesses [1] Group 1 - The transition of customers towards implementing artificial intelligence at scale is a significant trend observed in the market [1]

Exhibit 99.1 IBM RELEASES THIRD-QUARTER RESULTS Acceleration in revenue growth and profit across all segments; Raises outlook for full-year revenue growth and free cash flow ARMONK, N.Y., October 22, 2025 . . . IBM (NYSE: IBM) today announced third-quarter 2025 earnings results. "This quarter we accelerated performance across all of our segments, and again exceeded expectations for revenue, profit and free cash flow. Clients globally continue to leverage our technology and domain expertise to drive producti ...

IBM beat Wall Street estimates for third-quarter revenue and profit on Wednesday, driven by booming demand for its software and new mainframe as the rush to deploy AI models boosts sales for the under... ...

Core Insights - IBM experienced a slowdown in growth in its key cloud software segment, which overshadowed strong AI-driven demand for its new mainframe, leading to third-quarter sales and profit exceeding market estimates [1][2] Group 1: Cloud Segment Performance - Sales growth in IBM's hybrid cloud unit, Red Hat, decelerated to 14% from 16% in the previous quarter, raising concerns among investors about the company's ability to capitalize on the increasing demand for cloud services driven by AI adoption [2][3] - CEO Arvind Krishna indicated that the hybrid cloud unit is expected to return to mid-teen percentage growth entering 2026 [3] Group 2: Financial Performance - IBM reported third-quarter revenue of $16.33 billion, surpassing analysts' average estimate of $16.09 billion [2] - The infrastructure segment, which includes the mainframe, saw revenue rise 17% to $3.56 billion in the quarter [4] Group 3: AI and Mainframe Developments - The new mainframe, designed with AI-specialized chips, is gaining traction in the financial industry, facilitating compliance with data residency and encryption regulations as firms adopt AI technology [5] - IBM's AI business grew to $9.5 billion, an increase of $2 billion from the second quarter [5] Group 4: Future Outlook - IBM raised its revenue growth outlook for the current fiscal year to more than 5% at constant currency, up from a prior forecast of at least 5% growth [6]

Core Insights - The quantum computing industry is transitioning from research to commercialization in 2025, with significant backing from U.S. agencies and leading companies generating measurable revenues [1][3][5] Government Support and Funding - The U.S. Department of Energy allocated approximately $1,153 million to its Advanced Scientific Computing Research program, emphasizing Quantum Information Science (QIS) as a core focus area for FY 2025 [3] - The National Institute of Standards and Technology (NIST) reported a 2.6% increase in funding for QIS, highlighting its importance in AI research and technology readiness [4] - The Quantum Economic Development Consortium (QED-C) noted accelerating global demand for quantum computing services, particularly in materials science, cybersecurity, and logistics optimization [4] Market Dynamics and Challenges - The U.S. Trade Representative imposed new tariffs on semiconductor and photonics components from China, temporarily increasing costs for U.S. hardware developers [5] - Despite these challenges, commercial progress in quantum companies remains strong [5] Company Highlights IBM - IBM launched its 1,121-qubit Condor quantum processor for enterprise clients and introduced the Quantum Utility initiative to apply quantum performance to real-world problems [8] - The company reported a revenue increase in its quantum services and cloud computing divisions, with a projected earnings growth of 7.7% and revenue growth of 6.4% in 2025 [9] IonQ - IonQ achieved significant performance milestones and technological advancements, including converting trapped-ion photon emissions into telecom-band photons [10] - The company is projected to report earnings growth of 37.8% and revenue growth of 115.1% in 2025, with a year-to-date stock increase of 42.4% [11] Rigetti - Rigetti is expected to see modest revenue growth, reporting $1.8 million in revenues and a $39.7 million net loss in the second quarter, while raising $350 million to strengthen its balance sheet [12] - The company is projected to report earnings growth of 75% and has experienced a year-to-date stock surge of 162.1% [13]

Core Viewpoint - IBM Common Stock (NYSE:IBM) is highlighted as a trending stock due to its multiple revenue streams and exposure to AI and tokenization, making it a "defensive" investment option in the current market environment [1][2]. Group 1: Company Overview - IBM underwent a management change in 2020, shifting its focus significantly towards AI and enterprise architecture, which includes a consulting arm that aids in governance and regulatory compliance [2]. - The company is deeply integrated with financial institutions, leveraging its consulting capabilities to remain relevant in decision-making processes related to AI [2]. Group 2: Market Position and Strategy - IBM is positioned as a key player in the emerging themes of tokenization and market access, which are expected to gain traction alongside AI developments [2]. - The company’s multiple revenue streams encompass AI, tokenization, and operational efficiency, allowing it to mitigate macroeconomic uncertainties through recurring enterprise workloads [2]. Group 3: Investment Sentiment - There is a belief that while IBM has potential as an investment, other AI stocks may offer higher returns with limited downside risk, indicating a competitive landscape in the AI sector [3].

Core Insights - IBM has partnered with Groq to integrate Groq's inference technology, GroqCloud, into its watsonx Orchestrate platform, enhancing AI model performance and cost efficiency [1][8] - The collaboration aims to address challenges in speed, cost, and reliability of AI adoption across various sectors, including healthcare, finance, government, retail, and manufacturing [3][8] - The Agentic AI market is projected to grow at a compound annual growth rate of 43.61% from 2025 to 2030, presenting a significant opportunity for IBM's watsonx platform [4] Company Developments - IBM's integration of Groq's Language Processing Units (LPUs) is expected to provide over five times faster and more cost-efficient inference compared to traditional GPU systems [1] - The partnership will enable IBM watsonx clients to leverage high-speed inference, facilitating the deployment of agentic AI for various applications such as customer care and productivity enhancement [2][8] - IBM plans to enhance its Red Hat open source vLLM technology and Granite models through the integration of Groq's LPU architecture [3] Market Context - Other tech firms, such as ServiceNow and Microsoft, are also focusing on AI deployment, with ServiceNow enhancing its AI platform and Microsoft developing Azure AI Foundry [5][6] - IBM's stock has increased by 23% over the past year, while the industry has seen a growth of 48.6% [7] - The Zacks Consensus Estimate for IBM's earnings for 2025 has risen over the past 30 days, indicating positive market sentiment [12]