IBM stock has fallen by 3% ahead of its Q4 2025 earnings release on Jan. 28. Market is re-evaluating stock trading around $295 after a peak above $320. Investors are cautious during earnings season, focusing on sustainability of software growth, free cash flow guidance, and Z17 cycle performance into 2026.

IBM, a global company, shifted focus to valuable software and AI-based workloads, with a market cap of $272 billion. Stock has traded between $214 and $325 in the past year, still higher than a year ago but trailing the S&P 500. Valuation at 27x trailing and 25x forward earnings.

Expected earnings of $4.33 per share for Q4 2025, analysts vary on revenue estimates. Focus on software and consulting businesses’ performance. Guidance on full-year 2026, margin, and free cash flow expansion will drive stock movement.

IBM confirms earnings date of Jan. 28. Analyst sentiment is mixed, with a “Moderate Buy” consensus rating and an average price forecast of $300. Potential significant gain if estimates are beaten, downside risk if growth trends slow down.

Read more at Yahoo Finance: Dear IBM Stock Fans, Mark Your Calendars for January 28