IBM presented strong figures for the first quarter of 2025, particularly characterized by solid growth in the software sector. Total revenue amounted to $14.541 billion, reflecting a currency-adjusted increase of about two percent compared to the previous year. The gross margin was 55.2 percent.
Growth in the Software Sector
The revenue in the software segment, which includes Hybrid Platform & Solutions as well as Transaction Processing including Red Hat, grew by an impressive 7.4 percent to $6.336 billion in Q1 2025. This growth underscores the importance of IBM’s cloud and AI offerings as well as the strategic focus on hybrid platforms.
Challenges in Consulting
While the software business is robustly growing, IBM continues to face challenges in the IT consulting sector. This segment is often dependent on the economic cycle and can experience fluctuations in a difficult tech environment. Specific details about the consulting numbers were not explicitly mentioned in the available sources; however, it is generally reported that this area brings challenges.
Market Reaction and Stock Price
Despite an overall challenging environment for technology companies, IBM’s stock is showing resilience. Analysts view IBM as a defensive stock with potential, especially due to cloud and AI business fields. The stock is positively rated by experts and is considered an interesting option for investors given the stable quarterly figures and growth in promising segments like software.
In summary, IBM shows for Q1 2025:
- Revenue increase slightly above the previous year (+2% currency-adjusted) to about $14.54 billion
- Strong growth in the software segment (+7.4%) to over $6 billion
- Operating profit solid at around $5.75 billion
- Challenges remain in the consulting area
- Stock regarded as defensive with potential due to cloud/AI growth
These factors make the stock attractive for long-term investors from the perspective of many analysts despite a challenging tech market.