Core Insights - IBM is expected to report higher revenues in the Consulting segment due to increased demand for technology consulting and business transformation services in Q2 2025 [1] Group 1: Consulting Segment Performance - The Consulting segment includes Business Transformation, Technology Consulting, and Application Operations, providing value and innovation through industry and technology expertise [2] - Consulting revenues are projected to reach $5.21 billion, a slight increase from $5.18 billion in the same quarter last year [6][9] - Incremental revenues are anticipated from new AI features launched during the Masters tournament, which provided predictive analytics and data-backed recaps for golf fans [3][9] Group 2: Strategic Partnerships - IBM extended its partnership with Deutsche Bank, enhancing access to its software solutions, which will aid in the bank's digital transformation and process optimization [4] - A new contract with Finanz Informatik aims to modernize its infrastructure, improving cyber resilience and operational efficiency, likely contributing to Consulting segment revenues [5] Group 3: Overall Financial Expectations - The total revenue estimate for IBM stands at $16.58 billion, up from $15.77 billion in the prior-year quarter, with earnings expected to grow from $2.43 to $2.64 per share [7] - The model does not predict an earnings beat for IBM in Q2, with an Earnings ESP of +1.35% and a Zacks Rank of 4 (Sell) [8]

Deutsche Bank (DB) has embarked on a digital transformation drive, focusing on cloud migration, artificial intelligence (AI), and automation to enhance operational efficiency and client services.In sync with this, this week, DB has collaborated with International Business Machines (IBM) and finaXai, a Singapore-based AI company.DB's Partnership With IBMDB announced that it reinforced its strategic partnership with IBM through a new license agreement, providing the former with greater access to International ...