International Business Machines Corporation (IBM) reported a profit of $644 million in its Infrastructure segment for Q3 2025, up from $422 million year-over-year, marking respective profit margins of 18.1% and 13.9%. The substantial growth is attributed to increased investments in AI, hybrid cloud, and quantum technologies, coupled with the adoption of the z17 program. The recent acquisition of HashiCorp has enhanced IBM’s capabilities in managing complex cloud environments.
IBM’s Infrastructure segment comprises Hybrid Infrastructure and Infrastructure Support services, witnessing a surge in cloud-native workloads and generative AI deployment. Meanwhile, Amazon Web Services (AWS) remains a leader in the cloud-computing market, while Microsoft Azure has expanded availability in over 60 regions globally, reinforcing their competitive positions.
Despite IBM’s 36% stock surge over the past year, it lags behind the industry growth of 96.9%. IBM currently trades at a forward price-to-sales ratio of 4.05, compared to the industry average of 5.02, and holds a Zacks Rank #3 (Hold).
