Technology and consulting giant IBM (NYSE: IBM) will be reporting results this Wednesday afternoon. Here’s what investors should know.
IBM beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $16.98 billion, up 7.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ operating income estimates but revenue guidance for next quarter missing analysts’ expectations.
Is IBM a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting IBM’s revenue to grow 7.6% year on year to $16.1 billion, improving from the 1.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.45 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. IBM has missed Wall Street’s revenue estimates twice over the last two years.
Looking at IBM’s peers in the it services & other tech segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Accenture delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 1.3%, and Applied Digital reported revenues up 84.3%, topping estimates by 17.6%. Accenture’s stock price was unchanged after the result, while Applied Digital was up 16.1%.
Read our full analysis of Accenture’s results here and Applied Digital’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the it services & other tech stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.4% on average over the last month. IBM is up 4.7% during the same time and is heading into earnings with an average analyst price target of $282.98 (compared to the current share price of $284.20).
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