IBM will host its Q4 2025 earnings call on January 28, 2026 at 5:00 p.m. ET, with a live webcast available on its investor relations website. Analysts expect IBM to report revenue in a range of $16.5 billion to $17.0 billion, reflecting mid-single-digit year-over-year growth driven by cloud and AI services. In Q3, IBM generated $16.7 billion in total revenue, including $7.5 billion from hybrid cloud and $1.2 billion from software-defined infrastructure—segments that grew 10% and 8% respectively. Adjusted EPS for Q4 is forecast at $3.10 to $3.30, up from $2.95 a year earlier, backed by ongoing cost efficiency initiatives and free cash flow that exceeded $2.5 billion in the first nine months of fiscal 2025.

IBM shares have climbed 14% year to date, outpacing the 8% gain in the S&P 500, as investors reward the company’s shift toward higher-margin software and consulting services. At a forward P/E of 11.5x consensus 2026 EPS, IBM trades at a roughly 40% discount to larger cloud peers. With dividend yield near 4.5% and a share repurchase authorization of $6 billion remaining through year-end, the company’s capital return program adds support. While Microsoft’s cloud unit continues to expand at over 25% annually, IBM’s more modest but steady mid-single-digit growth is underpinned by long-term contracts and a rebounding mainframe services backlog.

IBM’s integration of Red Hat remains central to its hybrid cloud strategy, with Red Hat’s open-source platform contributing nearly 30% of cloud revenues in Q3. The launch of Watsonx in mid-2025 has so far secured over 50 enterprise customers across financial services, healthcare and industrial verticals, with pilot deployments showing average productivity gains of 15%. IBM’s partnership with leading chipmakers and a planned $1 billion investment in generative AI research facilities aims to accelerate product roadmaps and narrow the gap with larger hyperscale providers. Management highlights that recurring software subscription revenues now represent 55% of total software sales, supporting more predictable cash flows.