International Business Machines (IBM) News Today

International Business Machines (IBM) is trading lower today after mixed Q3 2025 results: the company beat top‑ and bottom‑line estimates and raised guidance, but investor focus on slowing growth in its Red Hat/cloud software unit and some negative analyst moves have pressured the stock.

• Positive Sentiment: Beat estimates and raised FY guidance — Q3 revenue and EPS topped forecasts and management lifted full‑year outlook, supporting the bull case. IBM Releases Third-Quarter Results
• Positive Sentiment: AI and mainframes driving growth — IBM cited strong demand for AI-related software and mainframe (Infrastructure) sales, helping revenue expand ~9% YoY. Reuters: IBM beats quarterly estimates
• Positive Sentiment: Strategic AI partnership — IBM’s deal with Groq to accelerate inference for enterprise AI strengthens watsonx/Red Hat positioning and is a longer‑term catalyst often overlooked by short‑term traders. IBM & Groq partnership
• Neutral Sentiment: Dividend declared — IBM announced a $1.68 quarterly dividend (ex‑div Nov 10), supporting the income profile for yield‑oriented investors. Dividend Announcement
• Positive Sentiment: Selective analyst bullishness — Bank of America and BMO issued more constructive notes/targets today, reflecting differing analyst views that temper the negative reaction. BofA raises price target
• Negative Sentiment: Red Hat/cloud slowdown spooked investors — Growth in the Red Hat hybrid‑cloud software business decelerated (reported lower QoQ growth), which triggered the post‑earnings sell‑off despite the beat. Reuters: Cloud slowdown triggers anxiety
• Negative Sentiment: Analyst downgrades/target trims added pressure — Some firms trimmed targets or issued cautious notes (including an RBC target cut and at least one downgrade), amplifying the stock decline. RBC cuts price target

Bottom line for investors: fundamentals and AI/mainsframe momentum are supportive, but the market is punishing a near‑term deceleration in Red Hat/cloud growth and reacting to mixed analyst actions — that combination explains the stock weakness today.