Wedbush analysts expect International Business Machines Corp (NYSE:IBM) to report “another solid quarter” on October 22, driven by AI demand for the company’s offerings.
“We believe that IBM is well-positioned to capitalize on the current demand shift for hybrid and AI applications as well as quantum computing that will drive long-term profitable growth while the company’s strategic partnerships further expand its market,” the analysts wrote in a note to clients on Monday.
IBM recently announced a strategic partnership with Anthropic to accelerate the development of enterprise-ready AI by infusing Claude into IBM’s software portfolio.
The company also inked a partnership deal with S&P Global to embed IBM's WatsonX Orchestrate agentic framework into S&P Global’s suite of offerings.
They believe IBM “remains a dynamic name to own in the AI Revolution,” maintaining their ‘Outperform’ rating and 12-month target price of $325 on the stock.
The analysts noted the Wall Street consensus estimate for IBM’s third quarter 2025 is $16.09 billion in revenue and earnings per share of $2.44, which they consider achievable given the acceleration of AI demand with the company’s enhanced software offerings, especially WatsonX.
IBM stock rose 0.6% to $283 in late-morning trading on Monday.