IBM Stock Soars in 2025: Earnings Beat and Analyst Outlook
International Business Machines Corporation (IBM) demonstrated outstanding market performance in 2025, achieving a 39.6% year-to-date increase and a 47.8% rise over the past 12 months, as reported by Yahoo Finance. The Armonk, New York-based technology company now holds a market capitalization of approximately $281.2 billion.
Outperformance Against Market Benchmarks
IBM’s growth has notably surpassed that of major benchmarks. The S&P 500 Index ($SPX) delivered gains of 15.6% year-to-date and 17.5% over the last year. In comparison, the Technology Select Sector SPDR Fund (XLK) recorded returns of 26.9% in 2025 and 30.1% for the same 12-month period.
Q3 Earnings Results
Following its third-quarter results announcement on October 22, IBM’s stock initially dropped slightly during trading but quickly recovered with a 7.9% surge in the next session. The company reported revenue of $16.3 billion for the quarter, representing a 9.1% increase year-over-year and exceeding analyst expectations by 1.4%.
"IBM reported overall revenue growth of 9.1% year-over-year to $16.3 billion for the third quarter, beating analyst expectations by 1.4%."
Adjusted earnings per share grew 15.2% from a year earlier to $2.65, topping consensus estimates by 8.6%. The consulting division achieved a 2% increase in revenue, while software and infrastructure segments rose 9% and 17%, respectively.
Analyst Expectations
Analysts forecast IBM to reach an adjusted earnings per share of $11 for the full fiscal year ending in December 2025. The company currently holds a "Moderate Buy" rating among analysts, reflecting optimism about its growth trajectory and consistent execution.
Author’s summary: IBM outperformed market peers in 2025, driven by strong quarterly earnings, resilient software and infrastructure growth, and sustained investor optimism.