The earnings call reflected strong revenue growth, particularly in the Software and Infrastructure segments, driven by AI and hybrid cloud initiatives. However, consulting performance was flat, and there were declines in Transaction Processing and Distributed Infrastructure revenues. Despite some challenges, the overall outlook remains positive with raised full-year guidance.

Company Guidance -

Q3 2025

During IBM's Q2 2025 earnings call, the company reported solid financial performance, with revenue reaching $17 billion, a 5% growth at constant currency, and adjusted EBITDA of $4.7 billion, marking a 16% growth. Operating earnings per share were $2.80, and free cash flow for the first half was $4.8 billion. The software segment saw an 8% revenue growth, driven by a 14% increase in Red Hat and 14% in Automation. Infrastructure revenue grew by 11%, fueled by a strong start for z17, reflecting a 67% increase in IBM Z. The GenAI book of business exceeded $7.5 billion, showing momentum with a $1.5 billion contribution in software bookings. IBM raised its free cash flow expectations for the year to above $13.5 billion, and adjusted EBITDA growth is projected in the low teens. The company is optimistic about its hybrid cloud and AI strategy and anticipates accelerating revenue growth of 5%-plus for 2025.

Strong Revenue Growth

IBM delivered $17 billion in revenue for the second quarter, exceeding expectations and growing over 5% at constant currency.

Software and Infrastructure Performance

Software grew 8% with Red Hat accelerating to 14% growth. Infrastructure revenue grew 11%, driven by a strong start to the IBM Z z17 program.

AI and Hybrid Cloud Momentum

GenAI book of business reached over $7.5 billion inception-to-date, with strong demand for AI agents, RHEL AI, and Granite models.

Free Cash Flow and Profitability

Generated $4.8 billion in free cash flow in the first half, with a 200 basis point expansion in adjusted EBITDA margin.

Raised Full-Year Guidance

IBM raised expectations for free cash flow to above $13.5 billion for the year and operating pretax margin to expand by about 1 point.

International Business Machines (IBM) Earnings, Revenues Date & History

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IBM Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 22, 2025	2025 (Q3)	2.44 / -	2.3	―	―	―
Jul 23, 2025	2025 (Q2)	2.65 / 2.80	2.43	15.23% (+0.37)
Apr 23, 2025	2025 (Q1)	1.42 / 1.60	1.68	-4.76% (-0.08)
Jan 29, 2025	2024 (Q4)	3.78 / 3.92	3.87	1.29% (+0.05)
Oct 23, 2024	2024 (Q3)	2.23 / 2.30	2.2	4.55% (+0.10)
Jul 24, 2024	2024 (Q2)	2.18 / 2.43	2.18	11.47% (+0.25)
Apr 24, 2024	2024 (Q1)	1.59 / 1.68	1.36	23.53% (+0.32)
Jan 24, 2024	2023 (Q4)	3.79 / 3.87	3.6	7.50% (+0.27)
Oct 25, 2023	2023 (Q3)	2.12 / 2.20	1.81	21.55% (+0.39)
Jul 19, 2023	2023 (Q2)	2.01 / 2.18	2.31	-5.63% (-0.13)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

IBM Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 23, 2025	$280.12	$258.76	-7.63%
Apr 23, 2025	$242.22	$226.28	-6.58%
Jan 29, 2025	$224.10	$253.15	+12.96%
Oct 23, 2024	$226.35	$212.39	-6.17%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.