IBM (IBM) Reports Q1 Earnings: What Key Metrics Have to Say

Financial Performance - For the quarter ended March 2025, IBM reported revenue of $14.54 billion, reflecting a 0.6% increase year-over-year and a surprise of +0.66% over the Zacks Consensus Estimate of $14.45 billion [1] - Earnings per share (EPS) for the quarter was $1.60, down from $1.68 in the same quarter last year, with an EPS surprise of +12.68% compared to the consensus estimate of $1.42 [1] Segment Performance - Consulting revenue was $5.07 billion, slightly below the average estimate of $5.09 billion, representing a -2.3% change year-over-year [4] - Infrastructure revenue reached $2.89 billion, exceeding the estimate of $2.83 billion, but showing a -6.2% decline compared to the previous year [4] - Software revenue was $6.34 billion, surpassing the estimate of $6.31 billion, with a +7.4% increase year-over-year [4] - Other revenue was $61 million, significantly below the estimate of $78.46 million, marking a -43.5% change year-over-year [4] - Transaction Processing revenue was $1.80 billion, slightly below the estimate of $1.88 billion, with no change year-over-year [4] - Infrastructure Support revenue was $1.20 billion, just under the estimate of $1.21 billion, reflecting a -7.7% change year-over-year [4] - Hybrid Infrastructure revenue was $1.60 billion, below the estimate of $1.64 billion, indicating an -11.1% decline year-over-year [4] Profitability Metrics - Segment Profit for Software was $1.85 billion, exceeding the estimate of $1.51 billion [4] - Segment Profit for Financing was $69 million, below the average estimate of $84.84 million [4] - Segment Profit for Infrastructure was $248 million, under the estimate of $282.23 million [4] - Segment Profit for Consulting was $558 million, significantly above the estimate of $388.71 million [4] Stock Performance - IBM shares have returned -3.6% over the past month, compared to the Zacks S&P 500 composite's -6.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]