IBM set to report Q1 earnings with decreased estimates, recent collaborations and acquisitions

From Nasdaq: 2025-04-21 10:23:00

IBM is set to report Q1 2025 earnings on April 23 with estimates at $14.45 billion in sales and $1.42 per share in earnings. Earnings estimates for 2025 have decreased to $10.73 per share. The cloud and data platform has delivered a four-quarter earnings surprise. However, the upcoming quarter does not predict an earnings beat.

During the reported quarter, IBM collaborated with Walmart’s white-label delivery service to simplify operational workflows for retailers. IBM also extended its collaboration with Juniper Networks to drive productivity in core enterprise workflows. The company also completed the acquisition of HashiCorp Inc. for $6.4 billion to strengthen its cloud and IT automation solutions.

IBM’s stock has gained 31.3% over the past year, outperforming peers like Microsoft and Oracle. The company is trading at a premium valuation relative to the industry. IBM aims to benefit from hybrid cloud and generative AI solutions. However, frequent acquisitions have escalated integration risks and strained margins.

Investors could wait for a better entry point to capitalize on IBM’s long-term fundamentals. The company expects growth from analytics, cloud computing, and security services. Despite declining earnings estimates, IBM is poised to benefit from strong demand for hybrid cloud and AI in the long run.



Read more at Nasdaq: IBM’s Q1 Earnings on the Horizon: How to Play the Stock Now?