International Business Machines Corp (NYSE:IBM) is scheduled to report fiscal first-quarter 2026 results next Wednesday after the close, with investors watching closely for signs that enterprise demand for artificial intelligence and hybrid cloud services continues to accelerate, according to Wedbush.
The firm expects IBM to deliver another solid quarter, driven by sustained strength across AI, hybrid cloud, automation and cybersecurity, as enterprises increasingly shift from AI experimentation to large-scale deployment in production environments.
Wedbush said IBM remains a key beneficiary of rising enterprise technology spending, highlighting its integrated mix of software, consulting, infrastructure and automation as a “durable business flywheel” that supports recurring revenue and cross-selling opportunities.
The firm added that IBM’s ability to combine these capabilities into a single enterprise stack continues to be a key competitive advantage as customers seek trusted and compliant AI solutions for complex environments.
For the quarter, Wall Street is expecting revenue of $15.61 billion and earnings per share of $1.81. Wedbush said those figures appear achievable and potentially beatable, citing ongoing momentum in enterprise AI adoption, broader use of IBM’s software portfolio, and continued strength in hybrid cloud and automation demand.
Attention on the earnings call will center on growth trends in IBM’s software business, demand for AI infrastructure and automation tools, and incremental adoption across key platforms such as WatsonX and Red Hat.
Investors will also be watching for updates on cybersecurity offerings and whether IBM is seeing additional “pull-through” from its integrated AI and cloud ecosystem.
