IBM Stock Surges on AI Momentum, But Consulting Headwinds Remain

Jun 23, 2025 7:11 AM - Parth Sanghvi

Image credit: Lorenzo Herrera

IBM (NYSE:IBM) shares have rallied in 2025, driven by growing investor confidence in the company's artificial intelligence strategy. CEO Arvind Krishna revealed that IBM now holds a $6 billion AI “book of business”, primarily powered by its Granite model suite and collaborations with firms like Mistral and Meta (NASDAQ:META).

IBM's AI offering helps clients quickly develop custom generative AI agents, aiming to simplify enterprise deployment of intelligent assistants. This push into AI aligns with broader strategic investments, including a $150 billion commitment to U.S. tech infrastructure and quantum computing development.

Key Points:

AI Book of Business: $6B and growing
AI agents: Buildable in “minutes” using IBM and third-party models
Quantum & AI investments: $150B pledged in the U.S.
Consulting revenue: Down 2% amid tariff-related spending slowdown
Federal contract impact: $100M in deals shelved due to U.S. budget cuts

Despite short-term weakness in consulting, IBM reaffirmed its 5% constant-currency revenue growth target for 2025.

Market Snapshot:

Track IBM's evolving fundamentals and earnings using:

Company Rating: For a snapshot of analyst sentiment and scoring on profitability, valuation, and momentum.
Earnings Historical: To examine IBM's quarterly performance and compare projections vs. actuals.

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