International Business Machines
Here are the analyst estimates, analyst commentary and key items to watch ahead of the results.
Earnings Estimates: Analysts expect IBM to report first-quarter revenue of $14.40 billion, down from $14.46 billion in last year's first quarter, according to data from Benzinga Pro.
The company beat analyst revenue estimates in the fourth quarter and has beaten estimates in six of the last 10 quarters.
Analysts expect IBM to report first-quarter earnings per share of $1.40, down from $1.68 in last year's first quarter. The company has beaten analyst estimates for earnings per share in eight straight quarters and nine of the last 10 quarters overall.
What Experts Are Saying: Wedbush analyst Daniel Ives recently highlighted IBM as a company that could benefit from enterprise AI spending in 2025.
The analyst said IBM's cloud penetration has been successful and could represent a monetization opportunity for the company. IBM was added to the Wedbush Best Ideas List in March.
In February, Oppenheimer analyst Param Singh initiated coverage on IBM with an Outperform rating and a $320 price target.
The analyst said IBM can sustain double-digit revenue growth in its software business thanks to Red Hat. Singh said Red Hat has broadened its product offerings and could see high-teen to 20% growth.
Singh also highlighted IBM's potential in AI applications, such as generative AI, for future growth opportunities.
Stephanie Link of Hightower Advisors highlighted IBM as a company in the software and services segment with recurring revenue and minimal exposure to global shocks given the current trade war climate.
Link highlighted IBM's low 1% exposure to reciprocal tariffs, compared to 43% for Apple and also said IBM's aggressive acquisition pace in areas like AI and cloud could help power future growth.
Key Items to Watch: Artificial intelligence is likely to be a key topic when IBM reports its first-quarter results.
Analysts and investors will also be looking to hear more about the company's exposure to countries that are facing reciprocal tariffs from Donald Trump's administration.
IBM's consulting and infrastructure segments saw a weak fourth quarter with revenue down year-over-year for both segments. Analysts and investors could be looking to see if these segments rebound in the first quarter.
Since the end of the fourth quarter, IBM has announced new products like the IBM z17, which blends AI features across software and hardware.
The z17 can address AI workloads and real-time processing needs for IBM customers. The product launches in June 2025.
IBM also announced it broadened its cloud offerings in Canada, which is part of a strategy to boost North American growth through AI-powered solutions.
"With our latest advancements in Canada, we are extending IBM's enterprise cloud platform and sovereign cloud capabilities to Canadian organizations in these sectors, helping them to address their local regulatory requirements, keeping data secured and maintain it in country," said GM for IBM Cloud Product & Industry Platforms, Rohit Badlaney.
IBM also recently announced it has acquired Hakkoda Inc, a deal that could enhance the company's consulting business segment for data transformation services.
Price Action: IBM stock is up 3% to $248.10 on Wednesday versus a 52-week trading range of $162.62 to $266.45. IBM stock is up 12.8% year-to-date in 2025 and up over 36% in the last year.
