IBM Shares Dip Despite Earnings Beat, Highlighting Broader Tech Sector Volatility
IBM's Q3 earnings outperformed analyst expectations with $2.65 EPS and $16.33B revenue, yet shares declined in after-hours trading. The 9.1% YoY revenue growth was propelled by its software segment (10% increase), though investors appeared unmoved by positive cash FLOW metrics including $2.4B free cash flow.
Tech sector earnings remain a focal point for crypto traders, as institutional capital flows between traditional equities and digital assets often correlate during periods of market uncertainty. IBM's conservative FY2025 revenue guidance of 5% growth versus 6.4% estimates may signal broader caution in enterprise tech spending.