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Based in Armonk, New York, International Business Machines Corporation (IBM) is a global leader in technology and innovation, providing advanced solutions in the fields of cloud computing, artificial intelligence, and enterprise services. With a market cap of $163.36 billion, IBM is renowned for its extensive portfolio that enhances business operations, data analytics, and IT infrastructure. The company is set to announce its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 24.
Ahead of the event, analysts expect IBM to report a profit of $2.17 per share, down marginally from $2.18 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
IBM's adjusted earnings of $1.68 per share for the last reported quarter surpassed the consensus estimate by 5.7%. The company's performance last quarter was driven by strong growth in its software segment.
For fiscal 2024, analysts expect IBM to report EPS of $9.90, up 2.9% from $9.62 in fiscal 2023.
IBM stock has gained 8.7% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 18.1% gains and the Information Technology ETF Vanguard’s (VGT) 25.4% returns over the same time frame.
Telefónica Tech and IBM announced a collaboration to enhance AI, analytics, and data governance solutions for enterprises in Spain. Additionally, IBM plans to invest $1 billion over five years to expand its semiconductor packaging and testing plant. It has integrated AI into its hardware for improved data management and new storage capabilities to optimize data center performance.
On Apr. 25, IBM shares dropped over 8% in pre-market trading after reporting Q1 results revenue of $14.46 billion, falling short of the $14.57 billion consensus estimate. The decline is despite optimism around IBM's AI initiatives, evidenced by a $1 billion backlog in AI-related consulting contracts. The company announced the acquisition of HashiCorp, aiming to enhance its hybrid cloud computing platforms and offer advanced hybrid and multi-cloud lifecycle management products. IBM upheld its full-year forecast, projecting mid-single-digit revenue growth at constant currency and around $12 billion in free cash flow.
On the date of publication, Rashmi Kumari 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.
