International Business Machines Corporation (IBM) is set to report its second-quarter earnings on July 22, 2026, with estimates of $17.66 billion in sales and $3.02 per share in earnings. Over the past 60 days, 2026 earnings estimates have declined by 0.56% to $12.33, while 2027 estimates have risen by 0.07% to $13.37.
IBM has historically shown a 6.15% average earnings surprise over the last four quarters, including a 5.5% surprise in the previous quarter. However, the company currently has an earnings surprise prediction of -0.33% and holds a Zacks Rank #3 (Hold). The firm launched two new managed services aimed at enhancing AI adoption and cybersecurity during this quarter and has committed $5 billion to its project, Lightwell, to enhance security in the open-source software ecosystem.
Despite these initiatives, IBM faces significant competition from Amazon Web Services and Microsoft Azure, alongside emerging threats from AI firms like Anthropic. Over the past year, IBM’s stock has declined by 23.4%, contrasting with a 194.7% increase in the industry. Currently, IBM’s shares trade at a forward P/E ratio of 16.85, above the industry average of 11.93.
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