IBM (IBM) reported $16.33 billion in revenue for the quarter ended September 2025, representing a year-over-year increase of 9.1%. EPS of $2.65 for the same period compares to $2.30 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $16.1 billion, representing a surprise of +1.43%. The company delivered an EPS surprise of +8.61%, with the consensus EPS estimate being $2.44.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how IBM performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Software: $7.21 billion compared to the $7.27 billion average estimate based on five analysts. The reported number represents a change of +10.5% year over year.
- Revenue- Consulting: $5.32 billion versus the five-analyst average estimate of $5.24 billion. The reported number represents a year-over-year change of +3.3%.
- Revenue- Financing: $200 million versus the five-analyst average estimate of $171.23 million.
- Revenue- Infrastructure: $3.56 billion versus $3.42 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +17% change.
- Revenue- Other: $38 million compared to the $-6.47 million average estimate based on four analysts. The reported number represents a change of -44.1% year over year.
- Revenue- Intelligent Operations: $2.4 billion versus the three-analyst average estimate of $2.34 billion.
- Revenue- Automation: $1.9 billion compared to the $1.78 billion average estimate based on three analysts.
- Revenue- Strategy and Technology: $2.9 billion versus $2.87 billion estimated by three analysts on average.
- Revenue- Hybrid Cloud: $1.9 billion compared to the $1.99 billion average estimate based on three analysts.
- Revenue- Infrastructure Support: $1.3 billion versus $1.27 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
- Revenue- Data: $1.5 billion versus $1.47 billion estimated by three analysts on average.
- Revenue- Transaction Processing: $1.9 billion versus $2.05 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
View all Key Company Metrics for IBM here>>>
Shares of IBM have returned +3.6% over the past month versus the Zacks S&P 500 composite's +1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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International Business Machines Corporation (IBM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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