IBM (IBM, $133.52) misses Q3 revenue expectation
International Business Machines (IBM) shares traded sharply lower Thursday, after the group posted weaker-than-expected third quarter revenue.
IBM’s non-GAAP earnings for the three months ending in September declined -21.6% to $2.68 per share, a penny ahead of the Street consensus forecast.
But total revenues fell -3.9% to $18 billion, which was lower than analysts' forecasts of $18.29 billion.
CFO James Kavanaugh mentioned lower customer business volumes in certain markets and some multi-national clients, compared to expectations.
Nevertheless, IBM's cloud and cognitive software business, in which it has incorporated Red Hat, experienced a +6.4% rise in revenue to $5.28 billion. The company’s cloud services revenues rose +11% to $5 billion.
But the company's largest segment, global technology services, saw revenues decline -5.6% to $6.7 billion.
For the full-year, IBM expects non-GAAP earnings of around $12.80 per share, a figure that is in line with its updated guidance from early August. The company re-iterated its free cash flow forecast of around $12 billion.
IBM in upward trend: price expected to rise as it breaks its lower Bollinger Band on November 18, 2025
IBM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 33 cases where IBM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where IBM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IBM advanced for three days, in of 363 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 304 cases where IBM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for IBM moved out of overbought territory on October 31, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 50 similar instances where the indicator moved out of overbought territory. In of the 50 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on November 13, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on IBM as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for IBM turned negative on November 13, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 35 similar instances when the indicator turned negative. In of the 35 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IBM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.152) is normal, around the industry mean (9.916). P/E Ratio (36.139) is within average values for comparable stocks, (49.085). Projected Growth (PEG Ratio) (2.080) is also within normal values, averaging (1.460). Dividend Yield (0.022) settles around the average of (0.025) among similar stocks. P/S Ratio (4.386) is also within normal values, averaging (35.355).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. IBM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
a manufacturer of various computer products through the use of advanced information technology
Industry InformationTechnologyServices
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