IBM
International Business Machines (NYSE: IBM) is scheduled to report Q2 results after the market closes...
Article Summary
HOLD- International Business Machines (NYSE: IBM) is scheduled to report Q2 results after the market closes Wednesday, with investors expected to focus on International Business Machines's outlook for the second half of 2026 after preliminary results missed Wall Street expectations.
- IBM reported preliminary second-quarter revenue of $17.2 billion, about $660 million below consensus estimates, while adjusted earnings of $2.93 per share also missed expectations due to weaker software growth, declining infrastructure revenue and flat consulting performance.
- Options markets are pricing in a move of roughly 7% following the earnings release, with analysts expecting management to address whether enterprise deals delayed during the second quarter have shifted into the current quarter and whether IBM will maintain its forecast for more than 5% constant-currency revenue growth and about $1 billion in free cash flow improvement this year.
- International Business Machines disclosed $12.5 billion in generative AI bookings, with management commentary on deal pipelines and capital allocation likely to be a key focus during the earnings call.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 9.7% | 25% | 35.0 ptsBelow Screener (9.7%) - Weak growth |
| EPS Growth Next 5Y ? | 6.6% | 25% | 20.0 ptsWeak (6.6%) - Low expectations |
| Target Price Upside ? | 26.2% | 20% | 75.0 ptsSignificant Upside (26.2%) - Target: $264.10 vs Current: $209.30 |
| Gross Margin % ? | 57.8% | 15% | 80.0 ptsVery Healthy (57.8%) - High-quality margins |
| Drawdown from 52-Wk High ? | -37.1% | 15% | 80.0 ptsSolid Dip (-37.1%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About IBM
- International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
- It operates through Software, Consulting, Infrastructure, and Financing segments.
- The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.
- The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions.
- The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment.
- Its Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services.
- It has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others.
- Additionally, the company operate a data streaming platform.
- The company has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads; and strategic partnership with three.ws to advance ai-powered 3d agent technology; has a collaboration with Lightwell to help strengthen open source software supply chain.
- The company was formerly known as Computing-Tabulating-Recording Co.
- International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.