IBM Shares Plunge Despite Strong Quarterly Earnings Surge

IBM delivered a robust financial performance for Q2 2025 that surpassed analyst forecasts, yet the market responded with one of the stock’s most significant single-day declines in recent months. This paradoxical investor reaction highlights a disconnect between headline results and underlying market expectations.

The Armonk-based technology giant reported quarterly revenue of $17.0 billion and adjusted earnings of $2.80 per share, comfortably exceeding consensus estimates. Both the software and infrastructure segments demonstrated particular strength, posting double-digit growth rates that underscored the company’s operational momentum.

Management expressed confidence in IBM’s strategic direction by raising its full-year free cash flow projection to more than $13.5 billion. Despite this optimistic guidance from leadership, investors delivered a starkly different verdict through aggressive selling activity.

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