IBM said on Friday it is able to run a key quantum computing algorithm on commonly available chips from Advanced Micro Devices , in a step toward commercializing super-powerful computers.
International Business Machines Corp (NYSE:IBM)'s third quarter earnings report drew mixed reactions from analysts, who highlighted the company's strong AI and infrastructure growth while expressing differing views on software execution. For Q3, IBM reported revenue of $16.33 billion, above Wall Street estimates of $16.09 billion.
Major U.S. equities indexes mostly advanced Thursday as investors monitored China trade developments and digested the latest batch of corporate earnings. The S&P 500 and Nasdaq were higher, while the Dow Jones Industrial Average was little changed.
Tech stock IBM (NYSE:IBM) is down 3.9% to trade at $276.87 at last glance, brushing off the company's third-quarter top- and bottom-line win after software revenue growth showed signs of deceleration.
IBM stock (NYSE: IBM) dropped 7% in after-hours trading on October 22, 2025, despite reporting a strong earnings performance. This decline was driven by investor worries regarding slowing growth in the crucial software segment of the company, which overshadowed an otherwise solid quarterly outcome.
The S&P 500 lost -35 points, -0.53%, and the Nasdaq was -213 points, -0.93%. The small-cap Russell 2000 was down -1.41% on the day.
International Business Machines Corporation (NYSE:IBM ) Q3 2025 Earnings Call October 22, 2025 5:00 PM EDT Company Participants Olympia McNerney - Global Head of Investor Relations Arvind Krishna - CEO, President & Chairman James Kavanaugh - CFO and Senior VP of Finance & Operations Conference Call Participants Amit Daryanani - Evercore ISI Institutional Equities, Research Division Wamsi Mohan - BofA Securities, Research Division Benjamin Reitzes - Melius Research LLC Erik Woodring - Morgan Stanley, Research Division James Schneider - Goldman Sachs Group, Inc., Research Division Brian Essex - JPMorgan Chase & Co, Research Division Mark Newman Presentation Operator Welcome, and thank you for standing by. [Operator Instructions] Today's conference is being recorded.
Although the revenue and EPS for IBM (IBM) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
IBM (IBM) came out with quarterly earnings of $2.65 per share, beating the Zacks Consensus Estimate of $2.44 per share. This compares to earnings of $2.3 per share a year ago.
IBM saw growth decelerate in its Red Hat business, which analysts see as a major focus for investors.
International Business Machines Corp (NYSE:IBM) reported third-quarter revenue and profit above Wall Street expectations, driven by strong demand for AI and mainframe solutions, but shares fell 5% in after-hours trading amid concerns over its Red Hat unit. Revenue for the quarter rose 9% year-on-year to $16.3 billion, beating analysts' estimates of $16.1 billion.
Federal funding and rising demand are propelling IBM, IonQ and Rigetti as quantum computing turns commercial in 2025.