For the second-quarter, IBM guided for sales between $16.4 billion and $16.75 billion, ahead of the $16.31 billion expected by analysts.
IBM said on Wednesday it expects second-quarter revenue above Wall Street estimates, betting on resilient demand for its software services amid economic uncertainty brought on by U.S. President Donald Trump's tariffs.
IBM reported better-than-expected earnings and revenue for the first quarter. The company maintained its full-year forecast even in the face of what CEO Arvind Krishna called a "fluid" economic environment.
International Business Machines Corporation NYSE: IBM, an industry pioneer with a long-standing presence in the technology sector, offers a contrasting picture to the rapid growth and instability often seen in newer tech companies.
Backed by a strong focus on product innovation and healthy AI traction across various sectors, IBM is expected to gain from the Software segment.
IBM's Consulting segment is expected to have recorded lower revenues in the first quarter of 2025, owing to soft demand in some end markets and macroeconomic headwinds.
IBM is trading at premium valuation metrics and investors could wait for a better entry point to cash in on its long-term fundamentals.
IBM's growth prospects are weak compared to peers like Microsoft and Oracle, with a forward P/E of 22x and expected revenue growth of just 3%. Despite IBM's strong competitive advantages and ecosystem, its valuation is high, and growth appears already priced in, making it unattractive at current levels. IBM's stock chart signals potential downside, with a long-term ominous outlook, justifying a sell rating unless protected by an options collar.
This is my latest article where I provide predictions of upcoming dividend increases from companies with long-term dividend growth histories. Consumer products company Procter & Gamble extended its dividend growth streak to 69 years and pharmaceutical company Johnson & Johnson announced its 63rd year of dividend growth. Investors can expect double-digit boosts in the 2nd half of April from Ameriprise Financial and industrial company Parker-Hannifin, which will announce its 69th year of dividend growth.
Recently, Zacks.com users have been paying close attention to IBM (IBM). This makes it worthwhile to examine what the stock has in store.
IBM's transformation into a leader in cloud, consulting, and AI has driven strong returns, with the Hakkoda acquisition enhancing its data transformation services. Despite competition from giants like Amazon, Microsoft, and Alphabet, IBM's strategic focus on AI and cloud positions it well for future growth. IBM's financial health is robust, with increasing revenue, profitability, and a strong dividend yield, making it an attractive investment.
A single number underscores how quickly IBM (IBM -0.04%) is tapping into the artificial intelligence (AI) opportunity right now.