The Talmud says nothing at all about Islam.
The Talmud was published around 499 CE and Islam was founded may years later, around 622 CE. The Talmud mentions Arabs in numerous places, but that has nothing to do with Islam, the later religion.
For some reason a recent story about the new Arabic translation of the Talmud, "Lebanon news -Jordanian center translates Babylonian Talmud into Arabic" tells us that Mohammad Najem, spokesperson of the Amman-based Middle East Studies Center, said about the Talmud translation project, "It is important to understand how Jews view Islam as well as their own religion." Given the historical facts, the implication of this statement makes little direct sense.