International Business Machines Corporation (IBM) is set to report Q4 2025 earnings on Jan. 28, 2026, with a focus on strong software segment revenues driven by product innovation and watsonx.ai. Collaborations with S&P Global and Groq aim to enhance AI capabilities and supply chain management, potentially boosting revenues.

IBM’s acquisition of Confluent, Inc. is expected to modernize streaming data services, potentially increasing its client base. Analysts anticipate Software segment revenues of $8.9 billion, a significant improvement from the previous year. Total revenue estimates for IBM stand at $19.22 billion, with earnings per share expected to grow.

While IBM’s earnings beat for Q4 is not conclusively predicted, factors like the Earnings ESP and Zacks Rank typically increase the chances of a beat. IBM currently has an ESP of 0.00% with a Zacks Rank #3. Other companies to watch for potential earnings beats include Advanced Micro Devices, Inc. (AMD) and Cirrus Logic, Inc. (CRUS) in early February.

Zacks Investment Research highlights the potential for IBM’s earnings in Q4 to benefit from higher software revenues, driven by strategic collaborations and acquisitions. The focus on AI capabilities and supply chain management enhancements could position IBM for future growth and increased market share.

Read more at Nasdaq: Will Relatively Higher Software Revenues Aid IBM’s Earnings in Q4?