International Business Machines Corporation (IBM), headquartered in Armonk, New York, is a global technology and consulting company providing business software, cloud computing, artificial intelligence, and IT services. Valued with a market capitalization of $272.5 billion, the company plans to announce its fiscal fourth quarter 2025 results in the near future.
Ahead of this event, analysts expect this technology company to post earnings of $4.33 per share, up 10.5% from $3.92 per share in the same quarter a year ago. The company has surpassed final Wall Street estimates in each of the last four quarters. Its earnings of $2.65 per share in the previous quarter beat the forecast by 8.6%.
For the current fiscal year, which ends in December, analysts expect IBM to post earnings of $11.39 per share, up 10.3% from $10.33 per share in fiscal 2024. Additionally, its EPS is expected to grow 7.5% year-over-year to $12.24 in fiscal 2026.
IBM is up 34.6% over the past 52 weeks, outperforming both the 16.2% return of the S&P 500 Index ($SPX) and the 25.2% gain of the State Street Technology Select Sector SPDR ETF (XLK) over the same time period.
On November 12, IBM shares rose 2% in the morning session after the company announced major advancements in its quantum computing efforts. At its annual quantum developers conference, IBM unveiled its most advanced processor to date, the IBM Quantum Nighthawk, highlighting progress toward achieving the “quantum advantage,” the stage at which quantum computers outperform classical systems on specific problems. The company also unveiled 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 rose slightly at the end of the trading session.
Wall Street analysts are moderately bullish on IBM stock, with an overall rating of “Moderate Buy.” Among the 22 analysts covering the stock, nine recommend “Strong Buy”, one indicates “Moderate Buy”, 10 suggest “Hold” and two advise “Strong Sell”. While the company is trading above its average 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 had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com