IBM stock has surged by almost 40% this year due to positive earnings and a bullish outlook. Despite planned job cuts, IBM’s growth remains strong in AI and cloud computing. Revenue increased by 9% in Q3 2025, with full-year growth expected to exceed 5%.

IBM’s revenue and EPS beat in Q3 2025 was driven by innovation and a diverse portfolio. The company expects $14 billion in free cash flows for the year, allowing for flexibility in investments and acquisitions. IBM’s AI business is thriving, with a book of business over $9.5 billion.

IBM saw the highest revenue growth in years and reported strong performance across regions. Analysts rate IBM stock as a consensus “Moderate Buy,” with an average price target of $286.10. Despite a 27 P/E ratio, IBM’s AI expansion and dividend yield of 2.2% make it an attractive investment for the future.

Read more at Yahoo Finance: As IBM Cuts Thousands of Jobs, Should You Buy, Sell, or Hold IBM Stock?