The company was able to beat expectations on earnings-per-share and revenue, but this wasn’t enough.
IBM has released its Q2 2025 results, which showed the company beating analyst expectations. Despite outperforming EPS and revenue predictions, IBM stock still took a hit due to its software business underperforming against expectations.
IBM released its Q2 2025 earnings report in July 23, 2025, and in it the company highlighted its earnings-per-share and revenue. IBM EPS hit $2.80 adjusted against analyst expectations of $2.64 per share. Revenue was $16.98 billion against $16.58 billion. The software revenue was $7.39 billion, an increase of almost 10 percent but still short of analyst expectations of $7.43 billion. So, despite increases across the board, because numbers didn’t hit analyst expectations, IBM stock fell about 6 percent.
“We once again exceeded expectations for revenue, profit and free cash flow in the quarter. IBM remains highly differentiated in the market because of our deep innovation and domain expertise, both crucial in helping clients deploy and scale AI. Our generative AI book of business continues to accelerate and now stands at more than $7.5 billion,” said Arvind Krishna, IBM chairman, president and chief executive officer. “With our strong first-half performance, we are raising our full-year outlook for free cash flow, which we expect to exceed $13.5 billion.”
Be sure to look over our Q2 2025 page for more earnings from other companies in the quarter.
