Q3 25 EPS
$2.65
BEAT +8.31%
Est. $2.45
Q3 25 Revenue
$16.33B
BEAT +1.45%
Est. $16.10B
vs S&P Since Q3 25
-19.9%
TRAILING MARKET
IBM -12.6% vs S&P +7.3%
Market Reaction
Did IBM Beat Earnings? Q3 2025 Results
IBM delivered a standout third quarter, posting non-GAAP diluted EPS of $2.65 against a consensus estimate of $2.45, a beat of 8.31%, while revenue climbed 9.1% year over year to $16.33 billion, topping the $16.10 billion consensus by 1.45%. The sing… Read more IBM delivered a standout third quarter, posting non-GAAP diluted EPS of $2.65 against a consensus estimate of $2.45, a beat of 8.31%, while revenue climbed 9.1% year over year to $16.33 billion, topping the $16.10 billion consensus by 1.45%. The single biggest engine behind those results was a remarkable 61% surge in IBM Z mainframe revenue, which helped push the Infrastructure segment up 17%, while Software rose 10% to $7.21 billion on broad strength in Automation and Red Hat. IBM's cumulative AI book of business has now exceeded $9.50 billion inception to date, underscoring how deeply enterprise customers are embedding the company's hybrid cloud and AI capabilities into their operations. For the full quarterly breakdown, the momentum extended to margins, with operating pre-tax income margin expanding 2.0 points to 18.6%. Management rewarded investors by lifting full-year free cash flow guidance to approximately $14 billion and nudging constant currency revenue growth guidance above 5%, even as the company confirmed plans to trim a low single-digit percentage of its roughly 270,000-person global workforce in the fourth quarter.
Key Takeaways
- • Strong IBM Z mainframe cycle driving 61% revenue growth in that product line
- • Red Hat hybrid cloud platform up 14%
- • Automation software revenue up 24%
- • Clients leveraging IBM technology and domain expertise for AI-driven productivity and business value
- • Broad-based acceleration across all segments
- • Disciplined execution and focus on fundamentals delivering double-digit adjusted EBITDA growth
IBM YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
IBM Revenue by Segment
With YoY comparisons, source: SEC Filings
“This quarter we accelerated performance across all of our segments, and again exceeded expectations for revenue, profit and free cash flow. Clients globally continue to leverage our technology and domain expertise to drive productivity in their operations and deliver real business value with AI. Our AI book of business now stands at more than $9.5 billion. Given the strength of our business, we are raising our full-year outlook for revenue growth and free cash flow.”
— Arvind Krishna, Q3 2025 Earnings Press Release
IBM Earnings Trends
IBM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
IBM EPS Trend
Earnings per share: estimate vs actual
IBM Revenue Trend
Quarterly revenue: estimate vs actual
IBM Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $1.91 | — | $15.92B | +1.70% |
| Q4 25 BEAT FY | $4.29 | $4.52 | +5.36% | $19.69B | +2.57% |
| FY Full Year | $11.35 | $11.59 | +2.11% | $67.54B | +0.74% |
| Q3 25 BEAT | $2.45 | $2.65 | +8.31% | $16.33B | +1.45% |
| Q2 25 BEAT | $2.65 | $2.80 | +5.47% | $16.98B | +2.32% |
| Q1 25 BEAT | $1.43 | $1.60 | +12.04% | $14.54B | +1.05% |