IBM posted higher revenue in the third quarter as customers are transitioning to scaling artificial intelligence within their businesses from experimenting with it. ...

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... ...

By Arsheeya Bajwa (Reuters) -IBM on Wednesday recorded a slowdown in growth in its key cloud software segment, overshadowing booming AI-driven demand for the company's new mainframe that pushed third-quarter sales and profit above market estimates. The company's shares were down 5% in extended trading. Slower growth in IBM's cloud segment, housed within its software unit, raised alarm bells across investors betting heavily on Big Blue's ability to benefit more from booming demand for cloud services, as ...

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]

We recently published 10 Trending Stocks This Week. IBM Common Stock (NYSE:IBM) is one of the trending stocks this week. Jessica Inskip from StockBrokers said in a program on Schwab Network that she “really” likes IBM Common Stock (NYSE:IBM) stock amid the company’s multiple revenue streams and its exposure to AI and tokenization. Inskip also explained what makes IBM Common Stock (NYSE:IBM) a “defensive” play. “IBM in 2020 actually went through a management change. They’ve shifted a lot of focus and some ...

Key Takeaways IBM partners with Groq to integrate GroqCloud inference tech into watsonx Orchestrate.The move enables faster, cost-efficient AI performance and supports multiple enterprise use cases.IBM plans to enhance Red Hat vLLM and Granite models to strengthen its agentic AI ecosystem.International Business Machines Corporation (IBM) recently announced that it has entered into a partnership with Groq, which specializes in fast and affordable inference infrastructure that efficiently powers AI models. Gr ...

Core Viewpoint - IBM's upcoming earnings report is highly anticipated, particularly regarding its software segment growth, which is expected to increase by approximately 10.5% in the third quarter, following previous revenue misses in the first and second quarters [2][3]. Software Segment - The software segment's performance is critical, as previous quarters saw revenue misses leading to stock sell-offs. The market is closely watching for any signs of disappointment in this area [2][3]. - Cumulative AI bookings for IBM in the second quarter were reported at about $7.5 billion, indicating a focus on AI integration within their software offerings [3]. AI Strategy - IBM has formed a partnership with Enthropic to enhance its AI capabilities through the Claude chatbot, which competes with OpenAI's ChatGPT. This partnership will be integrated into various IBM products [4]. - Unlike other major players in the AI space, IBM's approach is less capital expenditure-intensive, focusing on unique applications rather than large-scale data center expansions [5][7]. Cloud Business - IBM's cloud strategy is characterized as a hybrid model, combining infrastructure as a service with data privacy, differing from competitors like Amazon and Microsoft, which primarily utilize large data centers [5][6]. - This hybrid cloud approach allows clients to maintain some data in-house while utilizing external resources, positioning IBM uniquely in the cloud market [7]. Quantum Computing - Quantum computing is viewed as a significant growth area for IBM, with expectations to launch a quantum computer by 2029-2030. This positions IBM as a key player in the emerging quantum technology sector [10][11]. - IBM's core competency in building large machines, such as mainframes, provides a competitive edge over other companies that focus on different technological areas [10]. Stock Performance - IBM's stock has been on an upward trend, approaching 52-week highs, with a year-to-date rally of about 30%. The stock is currently about 5-6% off its all-time highs, indicating strong market interest ahead of the earnings report [2][13].

Market Overview - Pre-market futures are showing a flat trend with a slight downward bias following a record closing high for the Dow on Tuesday [1] - The Dow is down 9 points, S&P 500 is up 3 points, Nasdaq is down 38 points, and Russell 2000 is down 9 points at this hour [1] Federal Reserve Insights - Fed Governor Michael Barr is scheduled to make appearances ahead of the upcoming monetary policy decision from the FOMC [2] - Analysts are nearly unanimous in expecting a 25 basis-point rate cut next Wednesday, which would lower the Fed funds rate to a range of 3.75-4.00% [2] Q3 Earnings Reports - **AT&T (T)**: Reported Q3 earnings of 54 cents per share, missing estimates by 1 cent, with revenues of $30.71 billion, down 0.81% from estimates. Shares are down 1.6% [3] - **Thermo Fisher (TMO)**: Reported earnings of $5.79 per share, beating estimates of $5.50, with revenues of $11.12 billion, exceeding expectations by 2%. Shares are up 2% [4] - **GE Vernova (GEV)**: Reported earnings of $1.64 per share, missing the consensus of $1.78 by 7.87%, but revenues of $9.97 billion were 8.62% higher than anticipated. Shares are up 3.8% [5] - **Teck Resources (TECK)**: Reported earnings of 55 cents per share, surpassing projections by 41%, with revenues of $2.46 billion, exceeding consensus by 14.3%. This company may gain relevance due to rare earth negotiations with China [6] Upcoming Earnings Expectations - **Tesla (TSLA)**: Expected to report negative earnings per share, down 26.4% year over year, but with a 5% increase in revenues. Shares are up 9.6% year to date [7] - **IBM**: Anticipated to report earnings 6% higher and revenues up 7.57% for the quarter, with shares having gained 28% since the start of the year [9] - **Southwest Airlines (LUV)**: Facing a tough year-over-year comparison with expected earnings growth down 93% but a slight revenue increase of 1.44% [9]

Market Overview - The U.S. stock market opened with slight declines across major indices, including S&P 500 (-0.04%), Russell 2000 (-0.11%), Dow (-0.14%), and Nasdaq (-0.18%) [2] Earnings Reports - Intuitive Surgical reported strong earnings, leading to a significant increase in its stock price by 17.76%. Other notable gainers include Vertiv (+7.1%) and Hilton (+3.1%) [3] - Pegasystems saw a rise of 12.5%, while Capital One and Haliburton increased by 4.12% and 2.77%, respectively, benefiting from positive earnings sentiment from the previous day [3] - Conversely, Texas Instruments experienced a sharp decline of 7.9% following weaker after-hours results, alongside other laggards like Manhattan Associates (-7.9%), Netflix (-7.4%), and Newmont (-4.77%) [4] - Mattel's stock fell by 5.5% after missing earnings expectations and reporting a decline in North American sales [4] Upcoming Earnings - Major earnings reports expected later today include Tesla, SAP, and IBM, which will be released after the market closes [8] Economic Indicators - The 10-Year Treasury yield decreased by 1.9 points to 3.944%, while the Continuous Gold Contract fell by 1.76% to $4,036.80 [6]