From Zacks Investment Research: 2025-04-24 18:52:00

IBM stock fell 6% despite beating Q1 expectations and maintaining full-year revenue guidance. Q1 sales of $14.54 billion exceeded estimates, with EPS of $1.60 beating expectations by 12%. IBM maintained full-year revenue growth guidance of 5% or more. The stock trades at a forward P/E of 22.8X, a premium to industry average. IBM stock holds a Zacks Rank #3 (Hold), with potential upside dependent on positive earnings estimate revisions. IBM has outperformed tech peers in 2025, with strong performance driven by hybrid cloud and AI strategy. IBM generated a multi-year high for Q1 free cash flow at $2 billion.



Read more at Zacks Investment Research: Buy the Dip in IBM Stock After Q1 Earnings? – April 24, 2025