IBM's Q2 Preview: AI Push and Pipeline in the Spotlight

IBM is set to report Q2 results after the close, with investors watching whether delayed enterprise deals shift into Q3 and whether the company can maintain more than 5% constant-currency revenue growth and about $1 billion in annual free cash flow improvement. Analysts expect management to address the Q2 revenue miss (about $17.2B) and adjusted EPS near $2.93, caused by softer software growth, weaker infrastructure revenue, and flat consulting, while updates on AI initiatives (Red Hat and watsonx) and deal pipelines will be key on the call. Options traders imply roughly a 7% move after the earnings release.