IBM Shares Slide Despite Strong Earnings, Raising Questions on Growth Trajectory
IBM shares dropped significantly in after-hours trading following Q3 2025 earnings, despite exceeding analyst expectations for both revenue and earnings per share. The decline reportedly reflects investor concerns about slowing growth in the company’s crucial software division and Red Hat business segment. Analysts are divided on whether the pullback represents a buying opportunity or signals deeper challenges for IBM’s AI-driven transformation strategy.
Earnings Beat Overshadowed by Growth Concerns
IBM shares reportedly declined approximately 7% in after-hours trading on October 22, 2025, despite the company delivering stronger-than-expected quarterly results, according to earnings analysis. The technology giant announced adjusted earnings per share of $2.65, significantly surpassing the $2.45 consensus estimate, while revenue totaled $16.33 billion compared to the anticipated $16.09 billion. Despite these positive results, sources indicate investor focus shifted to concerns about slowing growth in IBM’s crucial software segment.
