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Trade Tracker: Stephanie Link buys more IBM
IBMIBM(US:IBM) CNBC Televisionยท2025-07-25 17:08

IBM's Performance and Outlook - IBM's CEO expressed optimism about the macro environment [2] - IBM achieved total revenue growth of 18%, earnings growth of 15%, operating margins of 320 basis points, gross margins of 230 basis points, and free cash flow growth of 9% [3] - Red Hat experienced accelerated double-digit bookings, growing at 12% [4] - Software growth slowed down from 6% to 35% [4] Industrial Sector and Electrification Theme - The industrial sector is outperforming tech, driven by trade deals and a power surge [5] - Industrials are up 16%, supported by stocks like GE Vernova, which is up almost 90% this year [5] - Approximately $4 trillion is projected to be invested in electrification between now and 2025, indicating a decade-long theme [6] - GE Vernova reported record backlogs and a book-to-bill ratio over 13 [7] - GE Vernova anticipates power organic growth of 6% to 7% for the full year, with electrification organic growth at 20% [7]