09:40 AM EDT, 10/20/2025 (MT Newswires) -- International Business Machines ( IBM ) is expected to record another "solid" quarter and top Wall Street estimates due to artificial intelligence demand for its software offerings, Wedbush analysts said in a Sunday note.

The company is scheduled to report its Q3 financial results on Wednesday. Analysts polled by FactSet expect the company to post Q3 non-GAAP earnings of $2.45 per share. Wedbush analysts project $2.44. FactSet analysts expect Q3 revenue of $16.09 billion, while Wedbush estimates $16.15 billion.

"IBM ( 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," analysts said.

Wedbush said the company's WatsonX Orchestrate enables scalable deployment and governance of AI agents, "positioning IBM ( IBM ) in a strong spot to gain share in the agentic AI era."

Wedbush has an outperform rating on the stock and a price target of $325.