IBM Q3 2025 earnings report

IBM’s It reported third-quarter results above Wall Street forecasts and lifted guidance, citing ongoing AI headwinds. Still, the stock fell nearly 6% in extended trading.

The company’s performance according to LSEG forecasts is as follows:

• earnings per share: $2.65 vs expected $2.45
• Revenues: $16.33 billion versus the expected $16.09 billion.

IBM said revenue was up 9% from about $15 billion in the same period last year. The company reported net income of $1.74 billion, or $1.84 per share, after recording a loss of $330 million, or 36 cents per share, a year ago. Last year’s results included the impact of $2.7 billion in pension charges.

“Our customers continue to leverage our world-class technology and domain expertise to increase productivity in their operations and deliver real business value with AI,” CEO Arvind Krishna said in the statement.

IBM raised its revenue forecast and said it now expects revenue growth of “more than 5%” from “at least” 5%. This year’s free cash flow is expected to rise to $14 billion, up from the $13.5 billion estimated last quarter.

Krishna also said the company’s AI book of business grew from $7.5 billion to over $9.5 billion in the second quarter.

Like many technology companies, IBM is using artificial intelligence to streamline productivity and reduce costs. Krishna in May He told the Wall Street Journal It said it replaced 200 human resources roles.

IBM’s software revenue rose 10% to $7.21 billion, meeting StreetAccount forecasts. Consulting revenue totaled $5.3 billion, exceeding the $5.24 billion projection.

Infrastructure, which includes the mainframe computers business, rose 17% to $3.6 billion.

IBM’s board of directors also approved a quarterly dividend of $1.68 per share.

Correction: Due to a typo, a previous version of this story included an incorrect figure in the company’s AI business book.

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