11:09 AM EST, 01/27/2025 (MT Newswires) -- International Business Machines ( IBM ) is expected to post Q4 "solid constant currency results" amid improved sentiment throughout 2024, RBC Capital Markets said in an earnings preview Sunday.

The brokerage said the focus on Q4 results, which will be released on Wednesday, will still be about growth within the software segment.

RBC said it cut its Q4 estimates due to increasing foreign exchange headwinds since guidance, but kept its forecast regarding constant currency growth expectations.

The firm said it expects the company's management to focus on the medium-term outlook post-earnings, including a strategy to monetize on a growing generative artificial intelligence pipeline within consulting.

RBC maintained an outperform rating and $250 price target.

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