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IBM is expected to report first-quarter results largely in line with forecasts on April 22, though Bank of America has adjusted its estimates after the earlier-than-expected closing of IBM’s Confluent acquisition.
Bank of America said it expects an “inline quarter,” with Confluent contributing roughly $50 million in revenue during the period after the deal closed on March 17—about one quarter earlier than previously assumed.
The bank expects IBM to keep its full-year 2026 guidance unchanged. It said management is likely to offset near-term dilution from the acquisition through a combination of additional revenue contribution and cost synergies.
However, Bank of America lowered near-term earnings expectations to reflect the early Confluent close and a softer outlook for consulting growth. It reduced its 2026 second-quarter EPS estimate by about $0.15.
For the full year, the bank trimmed its 2026 EPS estimate to $11.98 from $12.20, citing acquisition-related dilution and slightly weaker consulting trends.
Bank of America highlighted mixed segment performance expectations for the quarter. It expects Red Hat-driven revenue growth to moderate to around 8% on a constant-currency basis in the first quarter, while automation is expected to rise about 13%.
For the data segment, the bank expects growth to benefit from the Confluent deal, accelerating through the year. It forecast consulting revenue to slip 1% in the first quarter before returning to modest growth in 2026.
On infrastructure, Bank of America expects a strong first-quarter increase of roughly 24%, driven by demand tied to IBM’s z17 cycle. It also expects growth to normalize later in the year as comparisons become more difficult.
Analysts maintain a Buy rating on the stock but trimmed their price objective to $300 from $340.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…