IBM's Earnings Outlook

IBM (NYSE:IBM) is gearing up to announce its quarterly earnings on Wednesday, 2026-01-28. Here's a quick overview of what investors should know before the release. Analysts are estimating that IBM will report an earnings per share (EPS) of $4.31. Investors in IBM are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter. It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance. Earnings History Snapshot In the previous earnings release, the company beat EPS by $0.21, leading to a 0.87% drop in the share price the following trading session. Here's a look at IBM's past performance and the resulting price change: Quarter Q3 2025 Q2 2025 Q1 2025 Q4 2024 EPS Estimate 2.44 2.65 1.4 3.75 EPS Actual 2.65 2.80 1.6 3.92 Price Change % -1.00 -8.00 -7.0 13.00 Tracking IBM's Stock Performance Shares of IBM were trading at $296.33 as of January 26. Over the last 52-week period, shares are up 29.61%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. Analyst Views on IBM For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on IBM. Analysts have given IBM a total of 7 ratings, with the consensus rating being Buy. The average one-year price target is $338.86, indicating a potential 15.87% upside. Peer Ratings Comparison This comparison focuses on the analyst ratings and average 1-year price targets of Accenture, Infosys and Cognizant Tech Solns, three major players in the industry, shedding light on their relative performance expectations and market positioning. Analysts currently favor an Buy trajectory for Accenture, with an average 1-year price target of $300.67, suggesting a potential 2.81% upside. Analysts currently favor an Neutral trajectory for Infosys, with an average 1-year price target of $18.5, suggesting a potential 93.67% downside. Analysts currently favor an Neutral trajectory for Cognizant Tech Solns, with an average 1-year price target of $86.12, suggesting a potential 70.55% downside. Insights: Peer Analysis The peer analysis summary outlines pivotal metrics for Accenture, Infosys and Cognizant Tech Solns, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance. Company Consensus Revenue Growth Gross Profit Return on Equity IBM Buy 9.11% $9.36B 6.29% Accenture Buy 5.95% $6.20B 7.13% Infosys Neutral 3.24% $1.44B 7.16% Cognizant Tech Solns Neutral 7.36% $1.83B 1.82% Key Takeaway: IBM is positioned at the top for Revenue Growth among its peers. In terms of Gross Profit, IBM is also at the top. However, for Return on Equity, IBM is at the bottom compared to its peers. All You Need to Know About IBM Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail. Unraveling the Financial Story of IBM Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position. Positive Revenue Trend: Examining IBM's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.11% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector. Net Margin: IBM's net margin is impressive, surpassing industry averages. With a net margin of 10.68%, the company demonstrates strong profitability and effective cost management. Return on Equity (ROE): IBM's ROE excels beyond industry benchmarks, reaching 6.29%. This signifies robust financial management and efficient use of shareholder equity capital. Return on Assets (ROA): IBM's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.18% ROA, the company effectively utilizes its assets for optimal returns. Debt Management: IBM's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.39, the company relies more heavily on borrowed funds, indicating a higher level of financial risk. To track all earnings releases for IBM visit their earnings calendar on our site. This article was generated by Benzinga's automated content engine and reviewed by an editor.