Report on IBM Q2 2025

IBM On Wednesday, on Wednesday, the shares fell as much as 6% after the technological conglomerate issued the results of the second quarter, headed by Wall Street forecasts.

Here’s how the company did compared to the LSEG consensus:

• Profit per share: $ 2.80 is expected to be $ 2.64
• Income: 16.98 billion against $ 16.59 billion

IBM income increased by almost 8% per year, according to data statement. Growth in The first quarter was below 1%. Net income, which includes costs associated with the acquisitions, has increased to $ 2.19 billion, or $ 2.31 per share, with $ 1.83 billion, or $ 1.96 a year ago.

“Although not generally is a major factor, geopolitical tensions are pushing for several customers to carefully,” – said CEO Arvind Krishna at a conference with analysts. “The US federal expenses were also somewhat restrained in the first half, but we don’t expect it to create long -term winds.”

Software revenue increased by about 10% to $ 7.39 billion, which did not meet the consensus of $ 7.43 billion among analysts surveyed by Stretaccount. Hybrid -cloud revenues, including Red Hat, showed a 16%growth. The gross profitability of the software unit of 83.9% was barely narrow than 84.0% of the Streetaccount consensus.

“Customers repeated their equipment costs,” Krishna said.

Consulting revenue increased by almost 3% to $ 5.31 billion, higher than consensus $ 5.16 billion.

“Delaying decision-making, especially in discrete projects, and the previous year’s update affected our periods,” said Jim Kavran, IBM Finance Head.

Infrastructure revenues increased by 14% to $ 4.14 billion, which is above $ 3.75 billion.

For a quarter IBM announced the next generation Z17 Computer Mainframe and acquisition of a consulting data firm and artificial intelligence Hack.

The Business Business Business in the field of IBM’s artificial intelligence is $ 7.5 billion, compared to $ 6 billion in April, Krishna said.

As for the management, IBM has called for more than $ 13.5 billion in 2025. Free cash flow, similar to the projection since April. The company still sees at least 5% revenue growth per year.

IBM can also expand through additional transactions.

What we have seen in the last four months made us optimistically optimistic that we are now in a rational regulation setting, where M&A makes sense, it will be approved in reason, ”Krishna said.

As of Wednesday, IBM shares increased 28% in 2025, while the S&P 500 index scored about 8% over the same period.

See: Kramer Stop Trading: IBM