Armonk, New York-based International Business Machines Corporation (IBM) is a global technology and consulting company that offers enterprise software, cloud computing, artificial intelligence, and IT services. With a market cap of $272.5 billion, the company is gearing up to announce its fiscal Q4 earnings for 2025 in the coming days.
Analysts are anticipating IBM to report a profit of $4.33 per share, marking a 10.5% increase from the year-ago quarter’s $3.92 per share. IBM has consistently exceeded Wall Street’s bottom-line estimates in the past four quarters, with earnings of $2.65 per share in the previous quarter surpassing expectations by 8.6%.
For the current fiscal year ending in December, analysts are expecting IBM to report a profit of $11.39 per share, up 10.3% from fiscal 2024’s $10.33 per share. Looking ahead to fiscal 2026, IBM’s EPS is projected to grow by 7.5% year-over-year to $12.24.
IBM’s stock has seen a 34.6% surge over the past 52 weeks, outperforming both the S&P 500 Index’s 16.2% return and the State Street Technology Select Sector SPDR ETF’s 25.2% uptick during the same period.
On November 12, IBM’s shares rose by 2% in the morning session following the company’s announcement of significant advancements in its quantum computing endeavors. At the Quantum Developer Conference, IBM introduced its most advanced processor yet, the IBM Quantum Nighthawk, demonstrating progress towards achieving “quantum advantage.” Additionally, IBM unveiled Quantum Loon, a test chip featuring all the essential components for constructing large-scale, next-generation quantum computers, leading to increased investor confidence.
Wall Street analysts hold a moderately optimistic outlook on IBM’s stock, with an overall “Moderate Buy” rating. Out of 22 analysts covering the stock, nine recommend a “Strong Buy,” one suggests a “Moderate Buy,” 10 advise “Hold,” and two indicate “Strong Sell.” While IBM is currently trading above its mean price target of $291.05, the Street-high price target of $360 implies a 19.8% premium to its current price levels.
Disclaimer: The author of this article does not hold any positions in the securities mentioned. The information provided is solely for informational purposes. This article was originally published on Barchart.com.
