Evercore ISI Reiterates Underperform on IBM Ahead of Earnings, Sees Results In Line

International Business Machines Corporation (NYSE:IBM) is one of the AI Stocks in Focus on Wall Street. On January 26, Evercore ISI analyst Amit Daryanani reiterated an Underperform rating on the stock with a $330.00 price target. The rating affirmation comes ahead of IBM’s fourth-quarter earnings report scheduled for Wednesday, January 28.

Evercore ISI expects IBM to report results in line with or slightly above consensus estimates. This performance is likely to be supported by continued momentum in the Infrastructure segment tied to the mainframe cycle and improvements in Consulting.

The company is expected to report revenue of around $19.2 billion and $4.29 in earnings per share. Its ongoing cost savings initiatives are likely to contribute further to pre-tax income margin expansion and create potential earnings upside for the fourth quarter.

These efficiency initiatives will likely achieve an estimated $4.5 billion in gross run-rate savings by the end of 2025. IBM is likely to provide formal 2026 guidance as part of the earnings report, with Evercore ISI anticipating it to guide growth at the lower end of its mid-single-digit target range, with at least one percentage point of pre-tax income margin expansion and an estimated $15 billion in free cash flow.

Beyond these numbers, investors are also likely to look at other key areas, such as AI bookings, revenue, details on the Confluent integration, and more.

International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.

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