Jim Cramer says IBM’s stock is a ‘trust but verify’ situation

Jim Cramer says IBM’s stock is a ‘trust but verify’ situation


CNBC’s Jim Cramer on Thursday advised investors to tread carefully if they’re debating whether to buy shares of IBM after the company reported its third quarter earnings.

“Even after IBM’s nearly 5% rally today, the stock’s still down substantially versus where it was trading just a few months ago. I’m optimistic … but keep in mind this remains a ‘trust but verify’ situation going forward,” he said.

IBM beat revenue and earnings estimates in its third-quarter results reported on Wednesday and raised its revenue outlook. The enterprise software and consulting company said that revenue increased 6.5% year-over-year.

While the strong U.S. dollar is a headwind for the company, which expects that it will have 7% less full-year revenue than it otherwise would have made, IBM still reiterated its guidance from earlier this year of around $10 billion in free cash flow.

“Put it all together and while IBM still has plenty of room for improvement, this quarter was a big step forward for them and it was a major win for the bulls,” Cramer said.

He added that the company’s spin-off of its managed infrastructure services business into Kyndryl in November 2021 seems to be paying off.

“Remember, IBM went through that whole Kyndryl spin off in order to become a growth company again, and that’s now what they are — they’ve got growth in spades,”  he said.

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.



Source

Disney reports earnings before the bell. Here’s what to expect
Business

Disney reports earnings before the bell. Here’s what to expect

A water tower stands at Walt Disney Studios on June 3, 2025 in Burbank, California. Mario Tama | Getty Images Disney reports its fiscal third-quarter earnings before the bell on Wednesday, and Wall Street will be looking for updates on the state of its streaming, TV and movies businesses, as well as its theme parks. […]

Read More
McDonald’s is about to report earnings. Here’s what to expect
Business

McDonald’s is about to report earnings. Here’s what to expect

A corporate logo for McDonald’s hangs above the door of a restaurant on Broadway in New York City on June 11, 2025. Gary Hershorn | Corbis News | Getty Images McDonald’s is expected to report its second-quarter earnings before the bell on Wednesday. Here’s what Wall Street analysts surveyed by LSEG are expecting the company […]

Read More
Yum Brands is cooking up more than fast food. It’s preparing the industry’s next CEOs
Business

Yum Brands is cooking up more than fast food. It’s preparing the industry’s next CEOs

Customers walk out of a Taco Bell and Pizza Hut restaurant during lunchtime in Los Angeles, California. Kevork Djansezian | Getty Images Looking for the next CEO for your restaurant chain? Try mining the ranks at Yum Brands. The restaurant conglomerate, which owns Pizza Hut, KFC and Taco Bell and reported quarterly results Tuesday, has […]

Read More