By Nauman Khan
Publication Date: 2026-01-22 11:39:00
This article first appeared on GuruFocus.
The upcoming earnings report stands at the center of attention as International Business Machines (NYSE:IBM) approaches its fourth-quarter 2025 results on Jan. 28, a moment many investors view as a test of confidence rather than a routine update.
Shares have slipped about 3% over the past week and now trade near $295, down from a recent peak above $320, signaling that the market may reassess how much optimism already sits in the stock.
This earnings season feels more selective, especially for large technology names with higher valuations. For IBM, the conversation focuses on software growth durability, free cash flow direction, and how long the Z17 mainframe cycle can continue to support results into 2026. While IBM has built a reputation for steady performance, guidance now matters as much as quarterly numbers.
Analysts expect earnings of about $4.33 per share, up from $3.92 a year earlier, though revenue forecasts vary….
