IBM’s Q3 revenue rises 9% to $16.33 billion as cloud and AI units fuel EPS beat

IBM posted Q3 2025 revenue of $16.33 billion, up 9% year over year, with EPS of $2.65 beating estimates by $0.15. Cloud & Cognitive Software segment grew 12%, driven by Red Hat subscriptions and AI consulting demand. Infrastructure revenue rose 4% as mainframe sales stabilized. Net income increased to $2.31 billion from $1.96 billion a year earlier. CEO Arvind Krishna highlighted AI adoption in enterprise clients and forecast FY free cash flow above $12 billion. Shares inched up 1.3% post-market. Analysts praised operating leverage but flagged margin headwinds from cloud integration and competitive pricing.