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 ...

International Business Machines Corporation (NYSE:IBM) is one of the stocks in Jim Cramer’s recent game plan. Cramer showed positive sentiment toward the company’s quantum computing future during the episode. He said: “IBM reports too. I expect them to explain why the bears who don’t think that the growth rate is up to stuff last quarter will have to eat crow. Hey, by the way, CEO Arvind Krishna has the best quantum computing campaign on earth. It puts all the speculative operators to shame. And unlike so ...

The BSE benchmark jumped 1,451 points, or 1.75%, signalling investor confidence.Among the top 10 firms, Reliance Industries saw its market value rise the most, climbing Rs 47,364 crore to Rs 19,17,484 crore. Bharti Airtel followed closely with a gain of Rs 41,255 crore, taking its valuation to Rs 11,47,235 crore.Banks also made strong gains. Among financial services, Bajaj Finance saw its market cap grow by Rs 28,903 crore to Rs 6,65,899 crore, and Hindustan Unilever edged up Rs 17,775 crore to Rs 6,12,010 ...

每经AI快讯，9月25日盘中，IBM股价涨幅扩大至5.3%，创4月9日以来最大涨幅。 ...

We start off with breaking news on Oracle's latest status center plans to stock higher after hours following a 4% drop during the regular session. Mackenzie Sagalis has got all the details. Mac Mel OpenAI Soft Bank and Oracle have just unveiled five more Stargate sites stretching across Texas, New Mexico, Ohio, and then an undisclosed destination in the Midwest.We're also getting a revised spend here that brings the size of the initiative to nearly 7 gigawatts and more than $400 billion dollars of investmen ...

The bubble that has formed in US Big Tech stocks over the past two years has further to run and investors should position for more gains, according to Bank of America strategists https://t.co/Whd2VrzV0w ...

Core Insights - Microsoft is significantly increasing its investment in AI data centers, with a commitment of $20 billion for the current quarter and an anticipated total of $100 billion for the fiscal year [3][4] - The company is building a $3.3 billion facility and plans to construct another one for $4 billion, indicating a strong focus on expanding its infrastructure to meet growing AI demand [2][4] - The new data center will house more than 100,000 Nvidia GPUs, making it the most powerful AI data center globally when it opens [10][11] Investment and Spending - Microsoft spent approximately $86 billion last fiscal year, with expectations for continued increases in spending due to rising demand for AI capabilities [4] - The company emphasizes that its spending is based on sophisticated forecasting and is responsive to market demand, allowing for adjustments as necessary [13][14] AI Demand and Partnerships - There is a growing demand for AI across various sectors, not limited to OpenAI, with Microsoft also developing its own AI models [12][8] - The partnership with Nvidia is highlighted as crucial for the technological advancements in AI, with both companies benefiting from each other's innovations [5][7] International Investments - Microsoft is also making significant investments in the UK, committing $30 billion over four years, which reflects a stable trade relationship fostered by both the US and UK governments [19][20] - The company maintains a healthy dialogue with government officials to ensure that investments align with business interests and regulatory stability [19][20] Future Collaborations - Microsoft and OpenAI are entering a new phase of their partnership, with discussions around revenue sharing and the transition to a for-profit model for OpenAI [21][22] - The collaboration is seen as mutually beneficial, with both companies acknowledging their interdependence for success [21][22]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Companies like Oshkosh Corporation (OSK), EPAM Systems, Inc. (EPAM), Green Dot (GDOT), The Mosaic Company (MOS), and PagSeguro Digital (PAGS) have low P/S ratios and strong growth drivers, making them attractive for investors [4][10] - Each of these companies combines low P/S ratios with strong fundamentals such as innovation, cost control, or digital expansion [10] Company Profiles - **Oshkosh Corporation (OSK)**: Engaged in designing and manufacturing custom-built vehicles, with a focus on electrification and strategic acquisitions to enhance its market presence. Currently holds a Value Score of B and Zacks Rank 1 [12][13] - **EPAM Systems, Inc. (EPAM)**: Provides software engineering and IT consulting services, benefiting from digital transformation and strategic acquisitions. Holds a Value Score of B and Zacks Rank 2 [14][15] - **Green Dot (GDOT)**: A leader in prepaid cards and Banking-as-a-Service, with a strong balance sheet and significant cash reserves. Holds a Value Score of A and Zacks Rank 1 [16][17] - **The Mosaic Company (MOS)**: A major producer of phosphate and potash, benefiting from strong demand in agriculture and cost transformation efforts. Holds a Value Score of A and Zacks Rank 2 [18][20] - **PagSeguro Digital (PAGS)**: Offers a suite of financial solutions in Brazil, focusing on digital banking and sustainable growth. Holds a Value Score of A and Zacks Rank 2 [21][22]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was €614.2 million, representing a 4.5% year-over-year growth, with a 1% growth in organic constant currency and 0.5% sequential growth [7][32] - Non-IFRS adjusted operating margin was 15% for the quarter, maintaining stability despite foreign exchange headwinds [32] - Non-IFRS adjusted diluted EPS for the quarter was $1.53, an increase from $1.51 in the previous year [32] - Free cash flow for the quarter was negative $2.9 million, an improvement from negative $28 million in the same period last year [33] Business Line Data and Key Metrics Changes - The AI Pods model has gained traction, with 18 clients adopting the subscription model, contributing significantly to pipeline growth [10][41] - The company reported 49 clients generating over €10 million in annual revenue, up from 39 a year ago [20] - The revenue mix is diverse, with North America accounting for 54.1%, Latin America 19.7%, Europe 19.6%, and new markets 6.6% [18][19] Market Data and Key Metrics Changes - North America remains the largest market, but Latin America showed strong recovery with new records in bookings [18][19] - Europe is the fastest-growing region, up 8.1% sequentially, with major wins in aviation and financial services [19] - New markets grew 84% year-over-year, with the Middle East leading this surge [19] Company Strategy and Development Direction - The company is focusing on AI-driven solutions and has launched a new go-to-market strategy centered around AI industry studios and the 100 square accounts [34] - A business optimization plan was executed, resulting in a reduction of approximately 1,000 employees (3% of the workforce) to align with strategic priorities [35] - The company aims to ensure structural agility to compete effectively in an evolving landscape while delivering strong results for shareholders [8][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has extended sales cycles, but they remain optimistic about converting the pipeline into signed work [7][50] - The company expects revenue for 2025 to be at least $2.445 billion, representing 1.2% year-over-year growth [38] - Management expressed cautious optimism regarding the recovery in North America and Latin America, with signs of stabilization and growth [72][74] Other Important Information - The company has strengthened its position in the robotics and AI ecosystem by investing in InOrbit, enhancing capabilities in advanced orchestration of robotic systems [17] - A multiyear collaboration with OpenAI and a strategic partnership with Amazon Web Services were announced to enhance AI adoption [15][30] Q&A Session Summary Question: Inquiry about the AI-based delivery model and subscription clients - Management confirmed that 18 clients have adopted the subscription model, which has been well received and is generating significant pipeline growth [41][44] Question: Discussion on optimization progress and headcount reduction - Management indicated that additional reductions are expected in Q3, with most of the optimization plan already implemented [52][53] Question: Performance of the creative pillar relative to other studios - Management noted that the creative pillar has been growing nicely and is not expected to be significantly impacted by AI [56][60] Question: Stickiness of the enterprise AI platform compared to traditional engagements - Management stated that the enterprise AI platform is becoming essential for clients, enhancing engagement and reducing churn [66][68] Question: Details on larger deals in the pipeline - Management highlighted significant deals in the financial services and healthcare sectors in the US, indicating a positive trend in the pipeline [71][72] Question: Assumptions around revised growth outlook and conservatism - Management explained that the revised guidance reflects stabilization in Latin America and a positive outlook for the US market [77][78] Question: North American deceleration and pipeline conversion trends - Management acknowledged a sequential decline in North America but expressed optimism about pipeline growth and deal closures [94][95]

Financial Performance Highlights - IBM's Q2 2025 revenue reached $17 billion, showing a 5% year-over-year growth[13] - The company's free cash flow for Q2 2025 was $28 billion[13,35], and the first half of 2025 saw $48 billion in free cash flow[21,35] - Adjusted EBITDA grew by 16% year-over-year[14] - Software ARR (Annual Recurring Revenue) grew by 10% year-over-year, reaching $227 billion[14,15] Segment Performance - Software revenue increased by 8% year-over-year to $74 billion[16,30] - Infrastructure revenue grew by 11% year-over-year to $41 billion, with IBM Z revenue increasing significantly by 67%[18,30] - Consulting revenue remained flat at $53 billion[20] Strategic Initiatives and Outlook - Generative AI book of business exceeded $75 billion[11,21] - IBM is raising its full-year outlook for free cash flow, expecting it to exceed $135 billion[11,22] - The company anticipates revenue growth to inflect higher to 5%+ for the full year 2025[22]