IBM Earnings Q3 2025: Stock Drops 5%
IBM earnings in Q3 2025 reflected that the corporation surpassed Wall Street forecasts with $16.33 billion in revenue and adjusted earnings of $2.65 a share, although shares fell 5% in after-hours trading. The IBM stock drop was despite high AI revenue growth, as investors concentrated on declining software growth in the Red Hat hybrid cloud business, which slowed to 14 percent versus 16 percent in the previous quarter. IBM’s AI book of business reached $9.5 billion, up $2 billion from Q2, but concerns about the company’s high-margin software segment and investor sentiment overshadowed the positive IBM earnings Q3 2025 results. IBM stock price chart -Source: CNBC IBM Earnings Q3 2025 Reveal AI Surge But Software Growth Slows President and CEO of IBM Arvind Krishna attends the 55th annual World Economic Forum meeting in Davos – Source: CNBC Red Hat Slowdown Triggers IBM Stock Drop IBM income for Q3 2025 The software revenue stands at 7.2 billion and is at par with expec...