IBM Stock Slips Despite Q3 Earnings Beat, Raised Guidance On Strong AI-Related Demand

Benzinga

IBM beat Q3 estimates with $16.33B revenue and $2.65 EPS, driven by strong Infrastructure and Software growth. The company raised its 2025 outlook and declared a $1.68 dividend, though shares fell 5% after hours.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02IBM reported third-quarter revenue of $16.33 billion,

00:06topping estimates of $16.09 billion, according to Benzinga.

00:09Trusts earnings were $2.65 per share,

00:12beating expectations of $2.45.

00:14Revenue rose 9% year-over-year,

00:16led by 70% growth in infrastructure,

00:1810% in software, and 3% in consulting.

00:21CEO Arvind Krishna said clients are using AI to boost productivity,

00:25heading the AI book of business now exceeds $9.5 billion.

00:28Or to prove a $1.68 per share dividend,

00:31able to sever 10.

00:33IBM raises 2025 revenue growth outlook to more than 5%

00:36and expects $14 billion in free cash flow.

00:39Shares fell 5.12% after hours on Wednesday to $273.93,

00:44according to Benzinga Pro.

00:45For all things money, visit Benzinga.com.

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