January 28, 2026
Finance

IBM Prepares to Announce Q4 Earnings Amid Upward Analyst Forecast Revisions

Analyst Ratings Show Optimism as IBM Nears Earnings Release and Completes Confluent Acquisition

Summary

International Business Machines Corporation (IBM) is set to report its fourth-quarter earnings on January 28, with analysts adjusting their forecasts upward in anticipation. The recent acquisition of Confluent, Inc. and a general consensus on improved revenue and earnings per share highlight market expectations going into the earnings call.

Key Points

IBM is set to report fourth-quarter earnings on January 28, 2026, with earnings per share forecasted to increase to $4.29 from $3.92 year-over-year.
Analysts expect IBM’s quarterly revenue to grow to approximately $19.21 billion, up from $17.55 billion in the previous year.
The company completed its acquisition of Confluent, Inc. at $31 per share in early December 2025, potentially impacting future financials.
Major analysts have revised their price targets upward and adjusted ratings positively in anticipation of IBM's upcoming earnings release.

International Business Machines Corporation (IBM), headquartered in Armonk, New York, is scheduled to announce its fourth-quarter financial results after market close on Wednesday, January 28, 2026. Market analysts have projected a positive trajectory in both earnings and revenue compared to the previous year.

According to aggregated data from Benzinga Pro, the consensus estimate for IBM's earnings per share (EPS) in the quarter stands at $4.29, marking an increase from $3.92 recorded in the same period last year. Alongside the rise in EPS, revenue expectations have also been elevated. Analysts forecast the quarterly revenue to reach approximately $19.21 billion, which is a notable rise from $17.55 billion year over year.

This upcoming earnings report follows a significant corporate development for IBM. On December 8, 2025, the company finalized an agreement to acquire Confluent, Inc., a technology firm traded under the ticker NASDAQ:CFLT, at $31 per share. This strategic acquisition reflects IBM’s intent to expand its capabilities and market reach, potentially influencing its financial profile in future periods.

Following recent market movements, IBM shares experienced a slight decline of 0.8%, closing at $293.86 on Tuesday, January 27, 2026. Investors are closely monitoring these fluctuations as the earnings announcement approaches.

Analyst Ratings and Adjusted Price Targets

Leading market analysts with strong records of accuracy have been revising their views and price targets for IBM as the earnings announcement nears. These revisions illustrate growing confidence in IBM's near-term financial performance.

  • JP Morgan: Analyst Brian Essex, holding a 61% accuracy rate, maintained a Neutral rating on IBM stock but increased the price target from $290 to $312 on January 21, 2026. This adjustment indicates a moderate optimism about the stock's valuation in light of forthcoming earnings.
  • Evercore ISI Group: With a 79% accuracy rate, analyst Amit Daryanani kept an Outperform rating for IBM and raised the price target from $315 to $330 on January 20, 2026, suggesting expectancy of better-than-average returns.
  • Bank of America Securities: Analyst Wamsi Mohan, known for an 82% accuracy rate, continued to recommend a Buy rating and increased the price target significantly from $315 to $335 on January 13, 2026. This reflects confidence in IBM's earnings trajectory and market position.
  • Jefferies: Analyst Brent Thill upgraded IBM from a Hold to a Buy rating and boosted the price target from $300 to $360 as of January 5, 2026. With a 73% accuracy rate, this upgrade highlights an improved outlook ahead of the earnings report.
  • Stifel: Analyst David Grossman, with a 61% accuracy rate, reaffirmed a Buy rating for IBM, simultaneously raising the price target from $295 to $325 on December 9, 2025. This early adjustment signals positive expectations for IBM's upcoming financial results.

Market Overview and Additional Observations

The consensus among these analysts underscores an anticipation of IBM’s continued growth and successful integration of recent strategic expansions such as the Confluent acquisition. However, IBM’s share price volatility in the days ahead of earnings illustrates the balance investors maintain between optimism and risk.

Beyond IBM’s individual developments, related market activity includes interest in peers and technology sector movements, demonstrated by the mention of companies like Confluent. Investors seeking deeper insights or up-to-date analyst ratings are encouraged to consult platforms such as the Analyst Stock Ratings page provided by market intelligence services.

Conclusion

As IBM nears its fourth-quarter earnings announcement, the combined complexion of analyst revisions, investor sentiment, and recent corporate actions frame a nuanced yet cautiously optimistic outlook. The upcoming financial disclosure will afford greater clarity on whether IBM’s operational performance aligns with heightened market expectations.

Risks
  • IBM shares declined 0.8% to $293.86 prior to earnings, indicating potential market uncertainty or profit taking.
  • Analyst ratings vary from Neutral to Buy, reflecting some diversity in confidence concerning IBM’s near-term performance.
  • The financial impact and integration success of the Confluent acquisition remain factors that could influence financial results.
  • Earnings and revenue projections are based on estimates that may not align perfectly with actual reported results.
Disclosure
Education only / not financial advice
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Ticker Sentiment
IBM - positive CFLT - neutral
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