Meta and IBM Shares Rise 7% After Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy IBM?
US equity futures are mixed in the opening hour of the evening session as markets digest corporate earnings out of Big Tech - Metaand IBMare faring the best out of high-profile names, both gaining 7% afterhours, while Microsoftis slipping despite topping estimates following in-line guide given on the earnings call. Teslawas up mid-single-digits on earnings, though shares had pared some gains afterhours as the company indicated that 2026 capex would dwarf last year, calling 2026 a "new book" rather than a "new chapter" for the company. Dow Industrials futures are down 0.3%, S&P e-minis are off by 0.2%, and Nasdaq 100 futures are slipping by 0.1%.Precious metals continue to soar in the wake of US Dollar weakness sustained further by the FOMC decision featuring two dovish dissenters. Gold is now above $5,500 while Silver trades north of $118 per ounce. Energy is also waking up to the rally in commodities as WTI Crude Oil tops $63 per barrel - the highest level since September.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Deluxeup 10.9%IBMup 7.6%Metaup 7.3%C.H. Robinson Worldwideup 6.9%Lam Researchup 6.0%Viavi Solutionsup 5.1%Tetra Techup 4.5%Hexcelup 3.0%CONMEDup 2.6%Teslaup 1.2%DOWN AFTER EARNINGS -Las Vegas Sandsdown 9.9%Whirlpooldown 8.5%LendingClubdown 7.7%Microsoftdown 6.3%ServiceNowdown 6.3%Calixdown 2.2%Cimpress plcdown 1.6%ALSO LOWER -Comstockdown 13.0% after equity offeringJoby Aviationdown 11.1% after $1B convertible debt / common stock offering
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Analyst Views on IBM
Wall Street analysts forecast IBM stock price to rise
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 253.710
Low
210.00
Averages
315.80
High
375.00
Current: 253.710
Low
210.00
Averages
315.80
High
375.00
About IBM
International Business Machines Corporation is a provider of global hybrid cloud and artificial intelligence (AI) and consulting expertise. The Company’s segments include Software, Consulting, Infrastructure and Financing. The Software segment includes hybrid cloud and AI platforms, which allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on integrating skills on strategy, experience, technology and operations by domain and industry. The Infrastructure segment is focused on the hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions. In addition, it offers a portfolio of life-cycle services for hybrid cloud infrastructure deployment. The Financing segment provides client and commercial financing, facilitating its clients’ acquisition of hardware, software and services. It helps clients in more than 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
IBM Set to Announce Earnings with Growth Expectations
- Earnings Announcement: IBM is set to announce its earnings this Wednesday after market close, with the market expecting an 8% year-on-year revenue growth, indicating a recovery from last year's flat revenue and showcasing the company's potential in the tech services sector.
- Performance Beat: Last quarter, IBM reported revenues of $19.69 billion, up 12.1% year-on-year, exceeding analyst expectations and also showing strong performance in earnings per share, reflecting the company's competitiveness in the market.
- Positive Market Sentiment: In the IT services and other tech segments, investor sentiment has been optimistic, with related stocks rising an average of 10.8% over the past month, while IBM's stock has also increased by 2.5%, indicating market confidence in its future performance.
- Stable Analyst Expectations: Despite IBM missing Wall Street's revenue estimates multiple times over the past two years, analysts have generally reaffirmed their expectations over the last 30 days, suggesting a cautiously optimistic outlook for the company's upcoming earnings report.
See More
United Airlines Reports Strong Earnings but Lowers Guidance Amid High Fuel Prices
- Earnings Performance: United Airlines reported solid earnings on Tuesday afternoon, yet lowered its guidance partly due to high jet fuel prices, indicating cost pressures impacting profitability.
- Stock Fluctuations: The stock ticked up slightly after hours, but remains 19% below its January high, although it has risen 12% over the past month, reflecting market confidence in its short-term performance.
- Industry Dynamics: Boeing's shares have dropped 12% in the last three months and are 14% off their 52-week high, highlighting concerns in the aerospace manufacturing sector.
- Dividend Yield: AT&T offers a quarterly dividend of 28 cents per share, yielding 4.29%, and despite a 13% decline since its September peak, it continues to attract some investor interest.
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- Executive Transition: Apple has announced that hardware chief John Ternus will take over as CEO on September 1, succeeding Tim Cook, indicating a significant leadership change that may impact the company's strategic direction.
- Chip Strategy Enhancement: Johny Srouji has been appointed as Chief Hardware Engineer, overseeing the development of Apple's in-house chips, signaling the company's commitment to reducing reliance on external suppliers and strengthening its autonomy in chip design.
- AI Capability Boost: Apple's chip team has scaled to thousands of engineers focused on enhancing AI performance on devices, which is expected to further solidify its competitive edge in the smart device market.
- Supply Chain Localization: Apple has committed to a $600 billion investment in the U.S. to establish an end-to-end silicon supply chain, reflecting its emphasis on American manufacturing while potentially enhancing supply chain stability in the global market.
See More
Apple Appoints New Hardware Chief, Strengthens Chip Strategy
- Executive Appointments: Apple has appointed Johny Srouji as Chief Hardware Officer while naming John Ternus as the new CEO, marking a significant step in the company's push towards in-house chip development, which is expected to enhance its competitive edge in the market.
- Chip Autonomy Strategy: Srouji's new role underscores Apple's commitment to in-house chip design, reducing reliance on external suppliers, particularly in the AI sector, which is anticipated to improve product performance and user experience.
- Global Engineering Team Expansion: Apple's chip team has scaled to thousands of engineers across multiple countries, including Israel, Germany, and the U.S., demonstrating its capability and resource integration in global R&D efforts.
- Future Development Direction: Apple plans to continue investing in domestic chip production over the next few years, which is expected to drive innovation in AI and other high-tech fields, further solidifying its market position.
See More
IBM Set to Announce Q1 Earnings Amid AI Concerns
- Earnings Announcement: IBM is set to release its Q1 earnings on April 22 after market close, with analysts largely optimistic about performance, particularly due to the earlier-than-expected completion of the Confluent acquisition.
- Performance Expectations: Jefferies analysts predict an EPS of $1.81 (+13.1% Y/Y) and revenue of $15.65B (+7.6% Y/Y) for Q1, indicating strong performance in infrastructure and software sectors.
- Market Reaction and Stock Volatility: Despite a 13.5% drop in IBM's stock year-to-date, analysts believe growth in automation and transaction processing will drive a rebound, especially as the AI narrative strengthens.
- Investor Focus: Investors will closely watch management's comments on the Confluent acquisition, quantum computing initiatives, and AI infrastructure, as these factors could significantly impact future growth prospects and market confidence.
See More
IBM Poised for Strong Q1 Results Amid AI Narrative
- Software Growth Outlook: Jefferies analyst Brent Thill anticipates IBM's software business will achieve 11% year-over-year growth in Q1, despite a decline from 14% in Q4, indicating the company is positioned to exceed market expectations after a mixed performance over the past year.
- Early Deal Closure: The earlier-than-expected closure of the CFLT deal (mid-March instead of June) and conservative assumptions for Red Hat (around 10% growth) create room for upward revisions in earnings estimates, showcasing the company's strategic flexibility in execution.
- Infrastructure and Consulting Trends: Analysts note that infrastructure growth is projected at 8% for Q1, down from 21% in Q4, while consulting growth is expected to be 4%, reflecting a normalization of cyclical spending trends, indicating a shift in market demand.
- Free Cash Flow Performance: Overall, IBM's total revenue is expected to grow approximately 7.4% year-over-year in Q1, with a free cash flow margin of about 13% (around $2 billion), providing robust support for future investments and shareholder returns.
See More
IBM Set to Announce Earnings with Growth Expectations
- Earnings Announcement: IBM is set to announce its earnings this Wednesday after market close, with the market expecting an 8% year-on-year revenue growth, indicating a recovery from last year's flat revenue and showcasing the company's potential in the tech services sector.
- Performance Beat: Last quarter, IBM reported revenues of $19.69 billion, up 12.1% year-on-year, exceeding analyst expectations and also showing strong performance in earnings per share, reflecting the company's competitiveness in the market.
- Positive Market Sentiment: In the IT services and other tech segments, investor sentiment has been optimistic, with related stocks rising an average of 10.8% over the past month, while IBM's stock has also increased by 2.5%, indicating market confidence in its future performance.
- Stable Analyst Expectations: Despite IBM missing Wall Street's revenue estimates multiple times over the past two years, analysts have generally reaffirmed their expectations over the last 30 days, suggesting a cautiously optimistic outlook for the company's upcoming earnings report.
See More
United Airlines Reports Strong Earnings but Lowers Guidance Amid High Fuel Prices
- Earnings Performance: United Airlines reported solid earnings on Tuesday afternoon, yet lowered its guidance partly due to high jet fuel prices, indicating cost pressures impacting profitability.
- Stock Fluctuations: The stock ticked up slightly after hours, but remains 19% below its January high, although it has risen 12% over the past month, reflecting market confidence in its short-term performance.
- Industry Dynamics: Boeing's shares have dropped 12% in the last three months and are 14% off their 52-week high, highlighting concerns in the aerospace manufacturing sector.
- Dividend Yield: AT&T offers a quarterly dividend of 28 cents per share, yielding 4.29%, and despite a 13% decline since its September peak, it continues to attract some investor interest.
See More
Apple Appoints New CEO and Hardware Chief Amid Strategic Shift
- Executive Transition: Apple has announced that hardware chief John Ternus will take over as CEO on September 1, succeeding Tim Cook, indicating a significant leadership change that may impact the company's strategic direction.
- Chip Strategy Enhancement: Johny Srouji has been appointed as Chief Hardware Engineer, overseeing the development of Apple's in-house chips, signaling the company's commitment to reducing reliance on external suppliers and strengthening its autonomy in chip design.
- AI Capability Boost: Apple's chip team has scaled to thousands of engineers focused on enhancing AI performance on devices, which is expected to further solidify its competitive edge in the smart device market.
- Supply Chain Localization: Apple has committed to a $600 billion investment in the U.S. to establish an end-to-end silicon supply chain, reflecting its emphasis on American manufacturing while potentially enhancing supply chain stability in the global market.
See More
Apple Appoints New Hardware Chief, Strengthens Chip Strategy
- Executive Appointments: Apple has appointed Johny Srouji as Chief Hardware Officer while naming John Ternus as the new CEO, marking a significant step in the company's push towards in-house chip development, which is expected to enhance its competitive edge in the market.
- Chip Autonomy Strategy: Srouji's new role underscores Apple's commitment to in-house chip design, reducing reliance on external suppliers, particularly in the AI sector, which is anticipated to improve product performance and user experience.
- Global Engineering Team Expansion: Apple's chip team has scaled to thousands of engineers across multiple countries, including Israel, Germany, and the U.S., demonstrating its capability and resource integration in global R&D efforts.
- Future Development Direction: Apple plans to continue investing in domestic chip production over the next few years, which is expected to drive innovation in AI and other high-tech fields, further solidifying its market position.
See More
IBM Set to Announce Q1 Earnings Amid AI Concerns
- Earnings Announcement: IBM is set to release its Q1 earnings on April 22 after market close, with analysts largely optimistic about performance, particularly due to the earlier-than-expected completion of the Confluent acquisition.
- Performance Expectations: Jefferies analysts predict an EPS of $1.81 (+13.1% Y/Y) and revenue of $15.65B (+7.6% Y/Y) for Q1, indicating strong performance in infrastructure and software sectors.
- Market Reaction and Stock Volatility: Despite a 13.5% drop in IBM's stock year-to-date, analysts believe growth in automation and transaction processing will drive a rebound, especially as the AI narrative strengthens.
- Investor Focus: Investors will closely watch management's comments on the Confluent acquisition, quantum computing initiatives, and AI infrastructure, as these factors could significantly impact future growth prospects and market confidence.
See More
IBM Poised for Strong Q1 Results Amid AI Narrative
- Software Growth Outlook: Jefferies analyst Brent Thill anticipates IBM's software business will achieve 11% year-over-year growth in Q1, despite a decline from 14% in Q4, indicating the company is positioned to exceed market expectations after a mixed performance over the past year.
- Early Deal Closure: The earlier-than-expected closure of the CFLT deal (mid-March instead of June) and conservative assumptions for Red Hat (around 10% growth) create room for upward revisions in earnings estimates, showcasing the company's strategic flexibility in execution.
- Infrastructure and Consulting Trends: Analysts note that infrastructure growth is projected at 8% for Q1, down from 21% in Q4, while consulting growth is expected to be 4%, reflecting a normalization of cyclical spending trends, indicating a shift in market demand.
- Free Cash Flow Performance: Overall, IBM's total revenue is expected to grow approximately 7.4% year-over-year in Q1, with a free cash flow margin of about 13% (around $2 billion), providing robust support for future investments and shareholder returns.
See More
