IBM (IBM) will likely report a solid fiscal first quarter next Wednesday, backed by sustained demand for AI, hybrid cloud, automation, and cybersecurity offerings, Wedbush Securities said in a note Friday.

The consensus estimates are for Q1 earnings per share of $1.81 and revenue of $15.61 billion, which should be "beatable," the note said.

The investment firm said it sees IBM's "software, consulting, infrastructure, and automation mix as a durable business flywheel." The company has also been able to integrate software, consulting, and infrastructure into a single stack, which is an "important advantage."

IBM also remains well positioned to capitalize on the next stage of enterprise AI deployment amid increased interest in "agentic AI, mission-critical workflows, and regulated-cloud adoption," the note said.

Wedbush reiterated its outperform rating and $340 price target.

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