IBM Q2 2025 earnings results beat expectations, stock falls on software revenue miss

In simple terms, IBM’s second quarter results for the year 2025 were published, revealing that they surpassed what financial analysts had anticipated. Although IBM excelled in terms of Earnings Per Share (EPS) and revenue, their stock value decreased because their software division didn’t meet the projected performance.

On July 23, 2025, IBM published its Q2 2025 earnings report. The report emphasized their earnings-per-share and overall revenue. IBM’s EPS was $2.80, surpassing analyst predictions of $2.64 per share. However, the revenue reached $16.98 billion instead of the predicted $16.58 billion. Software revenue amounted to $7.39 billion, a nearly 10% increase, but it fell short of the anticipated $7.43 billion by analysts. As a result, IBM’s stock experienced a decline of approximately 6 percent due to the figures not meeting analyst expectations.

In the recent quarter, IBM surpassed predictions for revenue, earnings, and cash flow. Once more, IBM stands out in the market due to our substantial innovation and specialized knowledge, key factors that aid clients in implementing and expanding AI technologies. Our generative AI sector is growing rapidly, currently valued at over $7.5 billion, according to Arvind Krishna, IBM’s chairman, president, and CEO. Given our robust first-half results, we are boosting our full-year projection for cash flow, aiming to surpass $13.5 billion.

Be sure to look over our Q2 2025 page for more earnings from other companies in the quarter.

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2025-07-24 03:57