Armonk, New York-based International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise software, cloud computing, artificial intelligence, and IT services. Valued at a market cap of $272.5 billion, the company is scheduled to announce its fiscal Q4 earnings for 2025 in the near future.
Ahead of this event, analysts expect this tech company to report a profit of $4.33 per share, up 10.5% from $3.92 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $2.65 per share in the previous quarter exceeded the forecasted figure by 8.6%.
For the current fiscal year, ending in December, analysts expect IBM to report a profit of $11.39 per share, up 10.3% from $10.33 per share in fiscal 2024. Furthermore, its EPS is expected to grow 7.5% year-over-year to $12.24 in fiscal 2026.
IBM has surged 34.6% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 16.2% return and the State Street Technology Select Sector SPDR ETF’s (XLK) 25.2% uptick over the same time period.
On Nov. 12, shares of IBM increased 2% in the morning session after the company announced major advances in its quantum computing efforts. At its annual Quantum Developer Conference, IBM unveiled its most advanced processor to date, the IBM Quantum Nighthawk, highlighting progress toward achieving “quantum advantage,” the stage at which quantum computers outperform classical systems on specific problems. The company also introduced Quantum Loon, a test chip designed with all the core components needed to build large-scale, next-generation quantum computers, boosting investor optimism. The stock settled marginally up by the end of the trading session.
Wall Street analysts are moderately optimistic about IBM’s stock, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, nine recommend "Strong Buy," one indicates a “Moderate Buy,” 10 suggest "Hold,” and two advise “Strong Sell.” While the company is trading above its mean price target of $291.05, its Street-high price target of $360 suggests a 19.8% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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