International Business Machines Corporation (IBM)
International Business Machines Corporation (IBM) Q2 2025 Earnings Call Transcript
International Business Machines Corporation (NYSE:IBM ) Q2 2025 Earnings Conference Call July 23, 2025 5:00 PM ET 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 Wamsi Mohan - BofA Securities, Research Division Amit Daryanani - Evercore ISI Institutional Equities, Research Division Benjamin Reitzes - Melius Research LLC James Schneider - Goldman Sachs Group, Inc., Research Division Erik Woodring - Morgan Stanley, Research Division Brian Essex - JPMorgan Chase & Co, Research Division Matthew Swanson - RBC Capital Markets, Research Division Operator Welcome, and thank you for standing by. [Operator Instructions] Today's conference is being recorded.
IBM (IBM) Surpasses Q2 Earnings and Revenue Estimates
IBM (IBM) came out with quarterly earnings of $2.8 per share, beating the Zacks Consensus Estimate of $2.64 per share. This compares to earnings of $2.43 per share a year ago.
IBM results beat expectations as the company pushes up full-year guidance
IBM delivered stronger results than expected and raised its forecast for full-year free cash flow.
Why is IBM's stock down after an earnings beat? Here's one quibble.
The company beat revenue expectations in consulting and infrastructure — but it didn't deliver upside for its software segment.
IBM results beat expectations as the company pushes up full-year guidance
IBM delivered stronger results than expected and raised its forecast for full-year free cash flow. The software, hardware and consulting company saw strength in sales of infrastructure, such as mainframe computers.
IBM results beat estimates on AI mainframe refresh, consulting revival
IBM beat Wall Street estimates for second-quarter revenue and profit on Wednesday, helped by renewed sales in its mainframe business as artificial intelligence upgrades spurred demand for the systems, which are capable of processing vast amounts of data.
IBM Earnings Preview: Cash Flow Multiples Are Much More Reasonable
IBM is scheduled to report their Q2 '25 financial results after the closing bell on Wednesday, July 23rd, 2025. Analyst consensus is expecting earnings per share of $2.64 on $16.59 billion in revenue and $3.19 billion in operating income for expected y-o-y growth of 9%, 5%, and 11%, respectively. If IBM hits the +5% consensus revenue estimate for Q2 '25, it will be the first time the stock has seen +5% revenue growth in any quarter since September '23.
Will Modest Consulting Revenue Growth Aid IBM's Q2 Earnings?
IBM's Q2 Consulting revenue may see modest gains, driven by digital deals with Deutsche Bank and Finanz Informatik.
Will Higher Software Revenues Buoy IBM's Earnings in Q2?
IBM's Q2 results may get a lift from surging Software revenues, driven by watsonx.ai, acquisitions and new AI labs.
IBM's stock has crushed the S&P 500 this year. That raises the bar for earnings.
Despite expectations for a mixed second quarter, some analysts are staying confident on IBM's software segment
IBM vs. D-Wave: Which Quantum Stock Is a Better Buy Now?
There's still plenty of room for growth as the AI race continues to unfold. Still, some growth investors are already moving on to the next revolutionary technological leap with various quantum computing stocks.
IBM FQ2: Margin Expansion Can Support More Upside
I reiterate my buy rating on IBM, driven by a strong margin expansion potential in FQ2 compared to Q1. I further expect the expansion to continue for the next few years, driven by a few key catalysts. The top ones, as I see them, are the growth potential in software (in particular cloud and AI segments) and cost control discipline.
