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IBM Q3 Earnings Preview: Software Strength in Focus After 30% Stock Rally

IBM Q3 Earnings Preview: Software Strength in Focus After 30% Stock Rally

Published:
2025-10-22 13:48:02
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BTCCSquare news:

IBM enters its Q3 earnings report riding a 30% year-to-date stock surge, significantly outpacing the Nasdaq Composite's 19% gain. Wall Street anticipates $16.1 billion revenue and $2.45 EPS for the September quarter, with December projections at $19.2 billion and $4.33 respectively.

The rally hinges on sustained software growth, particularly from Red Hat's hybrid cloud platform. Jefferies analyst Brent Thill maintains a Hold rating but raised his price target to $300, noting 'IBM can grind higher if fundamentals strengthen in 2H.' Market sentiment remains sensitive—any earnings miss or vague guidance could quickly deflate the current optimism.

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