International Business Machines Corp

IBM delivered a standout third quarter, posting non-GAAP diluted EPS of $2.65 against a consensus estimate of $2.45, a beat of 8.31%, while revenue climbed 9.1% year over year to $16.33 billion, topping the $16.10 billion consensus by 1.45%. The single biggest engine behind those results was a remarkable 61% surge in IBM Z mainframe revenue, which helped push the Infrastructure segment up 17%, while Software rose 10% to $7.21 billion on broad strength in Automation and Red Hat. IBM's cumulative AI book of business has now exceeded $9.50 billion inception to date, underscoring how deeply enterprise customers are embedding the company's hybrid cloud and AI capabilities into their operations. For <a href="https://247wallst.com/investing/2025/10/22/live-earnings-complete-ibm-q3-coverage/">the full quarterly breakdown</a>, the momentum extended to margins, with operating pre-tax income margin expanding 2.0 points to 18.6%. Management rewarded investors by lifting full-year free cash flow guidance to approximately $14 billion and nudging constant currency revenue growth guidance above 5%, even as the company confirmed plans to trim a low single-digit percentage of its roughly 270,000-person global workforce in the fourth quarter.