BUZZ-Preview: IBM is expected to announce growth in third-quarter earnings per share and revenue

October 21 - ** International Business Machines Corporation (IBM.N) shares rose about 1% on Wednesday, with the company set to release its third-quarter earnings after the U.S. market close.

** According to data from London Stock Exchange Group (LSEG), Wall Street expects this software, consulting, and infrastructure services provider to report adjusted earnings per share (EPS) of $2.86, higher than $2.65 for the same period last year; revenue is forecast at $16.82 billion, up from $16.33 billion in the third quarter of 2025.

** Over the past eight quarters, IBM has exceeded Wall Street’s earnings-per-share expectations seven times, falling short only in the second quarter of this year by 1.3%. In terms of revenue, it outperformed expectations six times, missing in the third quarter of 2024 (0.68%) and the second quarter of 2026 (2.4%).

** In July, IBM lowered its annual revenue growth forecast (link) after warning days earlier that enterprise spending was shifting towards data center equipment focused on artificial intelligence, putting pressure on its software and mainframe business—news that surprised Wall Street.

** So far this year, the stock has fallen more than 17%, while the Dow Jones Industrial Average .DJI is up over 9%, and the S&P 500 technology index .SPLRCT has gained about 24%.

** The stock’s latest trading price is $244.34, while analysts’ median target price is $239. Among 27 analysts, the ratings are: 7 “Strong Buy,” 6 “Buy,” 12 “Hold,” and 2 “Sell.”

** According to Trade Alert data, IBM options imply a possible 7% price swing, up or down, by this Friday; this range is slightly higher than the stock’s average single-day volatility of 6% following earnings releases over the past eight quarters.

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