IBM Beats Earnings Estimates, Raises Cash Flow Outlook as Shares Dip

Jul 24, 2025
CNBC
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Summary

IBM reports Q2 earnings exceeding estimates and raises full-year free cash flow outlook, but software revenue misses expectations and gross margin narrows, causing shares to dip as much as 6% in extended trading despite outperforming the S&P 500 significantly this year.

Key Points

  • IBM reports stronger than expected Q2 earnings and raises full-year free cash flow forecast.
  • Software revenue misses consensus and gross margin in the software business narrows.
  • IBM shares drop as much as 6% in extended trading despite outperforming the S&P 500 significantly this year.

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