Evercore ISI Reiterates Outperform on IBM Ahead of Earnings, Sees Results In Line

Core Viewpoint - IBM is positioned as a key player in the AI sector, with analysts expecting its fourth-quarter earnings to meet or slightly exceed consensus estimates, driven by momentum in its Infrastructure segment and improvements in Consulting [1][2]. Financial Performance - IBM is projected to report approximately $19.2 billion in revenue and earnings per share of $4.29 for the fourth quarter [3]. - The company's cost-saving initiatives are anticipated to enhance pre-tax income margins, potentially leading to earnings upside [3]. Cost-Saving Initiatives - IBM's efficiency initiatives are expected to yield an estimated $4.5 billion in gross run-rate savings by the end of 2025 [4]. - The company is likely to provide guidance for 2026 during the earnings report, with expectations of growth at the lower end of its mid-single-digit target range and at least one percentage point of pre-tax income margin expansion [4]. Key Areas of Interest - Investors will be focused on additional metrics such as AI bookings, revenue details, and the integration of Confluent [5]. - IBM is recognized as a pioneer in artificial intelligence, offering consulting services and a range of AI software products [5].