IBM's (IBM) guidance will be the subject of investor scrutiny when the company releases its Q2 financial report on Wednesday, RBC Capital Markets said in a Tuesday note.

Analysts said the company's Q2 preliminary results were lower than expected, driven by multiple external factors in June that elongated sales cycles and impacted Enterprise License Agreement closures.

RBC said key factors that investors will be on the lookout for in IBM's Q2 report include timing of deal delays, any closures, Red Hat growth following better-than-expected Q2 results, and macro commentary on supply chain.

Analysts lowered 2026 revenue estimate to $70.3 billion, compared with a FactSet consensus estimate of $70.71 billion.

RBC retained an outperform rating on the stock, but lowered its price target to $270 from $300.

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