IBM Earnings Preview: Software Growth and AI Investments in Focus
International Business Machines (IBM) is poised to report third-quarter earnings on October 22, with Wall Street anticipating $16.1 billion in revenue and earnings of $2.45 per share—a 6.5% year-over-year increase. The Software segment, particularly Red Hat’s 14% growth acceleration, is expected to drive performance. IBM’s aggressive investments in AI (watsonx) and quantum computing add long-term speculative appeal.
Consulting remains a weak spot, with flat revenue and an 18% decline in signings. Options traders are pricing in heightened volatility post-earnings, reflecting mixed sentiment. The stock’s trajectory hinges on whether AI momentum can offset consulting headwinds.