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.
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IBM (NYSE: IBM) is set to publish its earnings report on Wednesday, October 22, 2025. In the past five years, IBM has exhibited a trend of positive one-day returns in 58% of cases following its earnings announcements.
Wedbush analysts expect International Business Machines Corp (NYSE:IBM) to report “another solid quarter” on October 22, driven by AI demand for the company's offerings. “We believe that IBM is well-positioned to capitalize on the current demand shift for hybrid and AI applications as well as quantum computing that will drive long-term profitable growth while the company's strategic partnerships further expand its market,” the analysts wrote in a note to clients on Monday.