Analysts expect IBM to report consensus revenue of $17.86 billion and adjusted EPS of $3.02, while the stock currently trades around $212.67 against an average price target of $273.75.
Investors are primarily focused on the potential reallocation of enterprise IT budgets, as preliminary data suggests a shift toward AI hardware infrastructure at the expense of IBM's software and consulting deals.
The stock recently suffered its worst single-day decline since 1968 following a preliminary revenue miss and a sharp slowdown in software growth to 5%. A newly disclosed securities fraud probe regarding sales pipeline integrity has further clouded the near-term outlook ahead of the formal report.