Revenue Growth Acceleration
IBM reported a 7% revenue growth in Q3 2025, marking the highest growth in several years, with all segments accelerating sequentially.
Strong Performance in Automation and AI
Software growth accelerated to 9%, led by automation, which was up 22%. IBM's Gen AI book of business exceeded $9.5 billion, with 200 consulting projects using digital workers at scale.
Infrastructure Growth Driven by z17
Infrastructure delivered robust performance, growing 15%, driven by continued strength in z17, marking the highest third-quarter revenue in nearly two decades.
Record Free Cash Flow
IBM generated $7.2 billion of free cash flow, the highest nine-month free cash flow margin in reported history, with an expectation of about $14 billion for the year.
Consulting Return to Growth
Consulting returned to growth with revenue up 2%, reflecting solid demand for AI services and software-driven delivery models.
Significant Margin Expansion
IBM realized a 290 basis points expansion in adjusted EBITDA margin and raised full-year expectations for operating pretax margin expansion to over a point.