IBM(US:IBM) ZACKSยท2025-07-18 14:15Core Insights - IBM is expected to report quarterly earnings of $2.64 per share, reflecting an 8.6% increase year-over-year, with revenues projected at $16.58 billion, indicating a 5.1% year-over-year growth [1]. Earnings Projections - There has been a downward revision of 0.2% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts predict 'Revenue- Infrastructure' to reach $3.66 billion, a 0.3% increase from the previous year [5]. - 'Revenue- Software' is expected to be $7.48 billion, reflecting an 11% year-over-year increase [5]. - 'Revenue- Consulting' is forecasted at $5.21 billion, indicating a 0.6% increase year-over-year [5]. - 'Revenue- Hybrid Infrastructure' is estimated at $2.39 billion, showing a 0.6% decline from the prior year [6]. - 'Revenue- Transaction Processing' is projected to be $2.28 billion, reflecting a 3.8% increase year-over-year [6]. - 'Revenue- Infrastructure Support' is expected to be $1.25 billion, indicating a 3.7% decline year-over-year [6]. - 'Revenue- Other' is estimated at $51.29 million, suggesting a significant 35% year-over-year increase [7]. Gross Profit Estimates - 'Gross Profit- Consulting' is expected to be $1.37 billion, slightly up from $1.36 billion reported in the same quarter last year [7]. - 'Gross Profit- Infrastructure' is projected at $2.01 billion, down from $2.06 billion reported in the previous year [8]. - 'Gross Profit- Software' is expected to reach $6.25 billion, up from $5.63 billion reported in the same quarter last year [8]. Market Performance - IBM shares have shown a return of -0.4% over the past month, contrasting with the Zacks S&P 500 composite's +5.4% change, indicating potential underperformance in the near future [8].