--- title: "\"Performance\" IBM's third-quarter revenue exceeds expectations, but stock price falls 5% after hours" description: "IBM's adjusted earnings per share for the third quarter were $2.65, a year-on-year increase of 15%, with revenue growing 9% to $16.3 billion, both exceeding market expectations. Despite the company ra" type: "news" locale: "en" url: "https://longbridge.com/en/news/262304702.md" published_at: "2025-10-22T20:36:19.000Z" --- # "Performance" IBM's third-quarter revenue exceeds expectations, but stock price falls 5% after hours > IBM's adjusted earnings per share for the third quarter were $2.65, a year-on-year increase of 15%, with revenue growing 9% to $16.3 billion, both exceeding market expectations. Despite the company raising its annual guidance, the stock price fell 5% in after-hours trading. Software revenue increased by 10% to $7.21 billion, and the artificial intelligence business exceeded $9.5 billion in scale. Full-year revenue is expected to grow by more than 5%, with free cash flow around $14 billion IBM (IBM.US) announced that its adjusted earnings per share for the third quarter were $2.65, a year-on-year increase of 15%, exceeding market expectations of $2.45. Revenue grew by 9% to $16.3 billion, also surpassing the expected $16.1 billion. Despite the company raising its annual guidance, the stock price fell 5% in after-hours trading. During the quarter, software revenue grew by 10% to $7.21 billion, roughly in line with expectations. As for the artificial intelligence business, its current scale has exceeded $9.5 billion. IBM currently expects full-year revenue growth to exceed 5%, with full-year free cash flow expected to be around $14 billion, up from the previous forecast of $13.5 billion ### Related Stocks - [IBM.US - IBM](https://longbridge.com/en/quote/IBM.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | This Dancing Elephant Stomps All Magnificent 7 Stocks Except Google, Nvidia | Trouncing five of the seven Magnificent Seven members this year, top funds bet on IBM stock as it enters a new buy zone. | [Link](https://longbridge.com/en/news/264708930.md) | | IBM shares fall as cloud slowdown triggers investor anxiety | IBM shares fell nearly 7% in premarket trading due to concerns over slowing growth in its cloud software segment, partic | [Link](https://longbridge.com/en/news/262397774.md) | | Nvidia's new Meta deal may not be great news for these other tech stocks | Nvidia's expanded partnership with Meta has negatively impacted shares of competitors like Broadcom, AMD, and Arista. Me | [Link](https://longbridge.com/en/news/276186338.md) | | Robinhood to Launch Private Markets Fund for Retail Investors – These Are Its Holdings | Robinhood has launched Robinhood Ventures Fund I, its first closed-end fund, set to trade on the NYSE under the ticker R | [Link](https://longbridge.com/en/news/276167795.md) | | Western Digital to sell $3.17 billion stake in Sandisk | Feb 18 (Reuters) - Flash memory maker Sandiskon Wednesday said that Western Digitalwill sell a stake worth $3.17 billion | [Link](https://longbridge.com/en/news/276201046.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.