International Business Machines Corporation (IBM) is making bold moves across tech and business. Recent IBM news highlights its third-quarter results for 2025.
IBM News: IBM Beats Expectations in Q3 2025, Raises Full-Year Outlook
IBM reported stronger-than-expected earnings for the third quarter of 2025 on October 22.
The company reported total revenue of $16.3 billion for the quarter, a 9% increase from the same period last year, or 7% at constant currency.
Software revenue rose 10%, while consulting increased 3%. Infrastructure-led growth with a 17% jump, reflecting continued demand for IBM’s hybrid cloud and AI-related hardware.
“This quarter we accelerated performance across all of our segments, and again exceeded expectations for revenue, profit, and free cash flow,” said Arvind Krishna, IBM chairman, president and CEO.
Krishna added, “Given the strength of our business, we are raising our full-year outlook for revenue growth and free cash flow.”
The company also posted notable gains in profitability. Gross profit margin under GAAP rose to 57.3%, up 1.1 percentage points from a year earlier.
The strong results come amid heightened enterprise investment in AI and hybrid cloud solutions, areas where IBM has deepened its focus and innovation.
IBM Pledges $150 Billion Investment In U.S. Tech
IBM has shared plans to invest $150 billion in the United States over the next five years. Part of this includes $30 billion for building its mainframe and quantum computers on American soil.
Earlier this month, the company introduced the z17, a new mainframe designed to work with artificial intelligence.
IBM’s CEO, Arvind Krishna, said the company has supported American jobs and manufacturing for over a century. He added that this new investment will keep IBM at the center of advanced computing and AI.
Furthermore, this move will help the U.S. grow as a global tech leader. The company also said it runs the world’s largest group of quantum computers and will keep making them in the U.S.
IBM Partners With Box to Streamline Workflow
IBM has partnered with Box to help companies manage their files and communication in one place.
The partnership combines IBM’s tech with Box’s cloud tools. Together, they offer a secure, simple way for teams to store, organize, and share content.
This setup makes it easier for employees to work together, whether they’re in the office or remote. Box also connects with company apps, so teams don’t have to switch between platforms.
IBM Expands Enterprise Gen AI With Hybrid Capabilities
IBM has introduced new tools that help companies use AI with their own data. These updates make it easier to build and launch AI systems without being limited by different platforms or tech setups.
IBM expects businesses to create more than one billion apps by 2028. To keep up, companies will need systems that work together smoothly and handle large amounts of data.
To support this, IBM is bringing together hybrid cloud tools, AI agent features, and help from IBM Consulting. These combined efforts aim to make AI easier to use in real work settings.
Additionally, IBM CEO Arvind Krishna said companies now need AI that delivers results, not just experiments. He explained that IBM is offering tools that remove tech roadblocks and help companies move faster with AI projects.
IBM Debuts AI-Powered Global Tax Compliance Solutions
On May 1, 2025, IBM and EY announced new AI-powered tax solutions. They introduced EY.ai for tax, a tool built using IBM’s watsonx platform.
This effort combines IBM’s AI tools with EY’s experience in tax, aiming to help tax teams work faster and deal with complex rules, scattered systems, and limited staff.
The new tools use open-source AI models, including IBM Granite, to help companies manage tax tasks and global data more efficiently. IBM and EY designed the tools to reduce manual work and boost productivity.
The launch includes three new AI-powered solutions:
1. Intelligent Tax Data Lake
This tool pulls together data from many sources to support tax filings. It uses watsonx data, watsonx.ai, and open-source models. IBM uses this tool in its own tax department to gather and check data from 36 sources. It automates tasks that were done by hand and improves data quality.
2. Detect and Correct With Business Documents
This solution uses AI to pull data from invoices and compare it with information in the ERP system. It helps find and fix mistakes before filing. It also lets IBM process more documents automatically than it could before.
3. Withholding Tax Determinations
This tool helps tax professionals figure out the correct withholding tax rate for each transaction. It speeds up a process that happens every month and improves accuracy when reviewing thousands of intercompany transactions.
IBM News Today and the Future
IBM continues to push forward in AI, hybrid cloud, and global tech investments. The company shared strong Q1 earnings, launched new AI-powered tax tools, and announced partnerships and platforms that support large-scale AI use.
As IBM builds on these updates, it’s clear the company is focused on growth, smarter tools, and long-term results.
To keep up with IBM news and other updates on AI, tech, and business finance, subscribe to Financial Daily Update today.
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Updated October 24, 2025
