By Zacks Equity Research
Publication Date: 2025-12-11 17:47:00
International Business Machines Corporation IBM is benefiting from healthy traction in the Software segment. In the third quarter, the company reported revenues of $7.21 billion, up from $6.52 billion in the year-ago quarter. Net income improved to $2.37 billion from $1.97 billion a year ago, with margins of 32.9% and 30%, respectively.
The growth was driven by strength in Automation, which grew 22% during the quarter. With the growing digital transformation and AI integration initiative across sectors, enterprises are looking to optimize operations, automate infrastructure and workflows. IBM’s Automation portfolio offers end-to-end solutions that match all the requirements to ensure cost efficiency and enhance resiliency. Per our estimate, IBM is expected to generate $7.6 billion in revenues, indicating 16.3% year-over-year growth.
Hybrid Cloud remains a major growth driver for the company. In the third quarter, it reported 12% year-over-year growth. All three of IBM’s major…
