IBM’s stock dropped after concerns over a slowdown in its high-profile hybrid cloud business, Red Hat. While AI and infrastructure segments are booming, the deceleration in Red Hat’s growth triggered a nearly 5% decline in after-hours trading. In Q3 2025, IBM reported total revenue of $16.33 billion, up 9% year-over-year, with adjusted EPS of $2.65, surpassing analyst expectations.
The AI segment surged to $9.5 billion, reflecting strong demand for AI-powered mainframes and enterprise solutions. Despite this, the hybrid cloud unit grew only 14%, down from 16% last quarter. CEO Arvind Krishna remains confident in returning Red Hat to mid-teen percentage growth by 2026. IBM also raised its full-year revenue growth forecast to over 5% in constant currency, with expected free cash flow of $14 billion, exceeding Wall Street estimates.
This video breaks down IBM’s Q3 earnings, highlights AI and hybrid cloud performance, and explains why investors are keeping a close eye on Red Hat. Stay tuned for a full analysis of IBM’s growth trajectory and what it means for the tech giant’s future in AI and enterprise solutions.
#IBMStock #HybridCloud #RedHat #IBM2025Earnings #TechNews #AI #StockMarket #Investing #FinanceNews #TechAnalysis #Q32025 #EnterpriseTech #BusinessNews #CloudComputing #ArtificialIntelligence #AIStocks #TechInvesting #MarketUpdate #FinancialAnalysis #CorporateNews #WallStreet #TechEarnings #FutureTech #CloudTechnology #StockTrading
