Despite the international exposure, the year-over-year foreign exchange impact on IBM could be benign, said Drexel Hamilton analyst Brian White.
"Barring a major economic slowdown or execution issue, we believe the growth in IBM's strategic imperatives businesses can begin to offset the decline in its core businesses within the next 12 to 18 months," White wrote in a research note.
Cognitive solutions are expected to rake in $4.52 billion in revenue in the second quarter, while technology and cloud platforms are slated to bring in $8.84 billion, according to a StreetAccount consensus estimate.
On top of guidance and currency headwinds, investors will look at the company's margins, which are projected to show a strong expansion as the year progresses, according to Foresi. Gross margins are predicted to be about 49.7 percent, StreetAccount estimates.
Also of note is top line, which, despite beating Wall Street expectations, fell for the 16th-straight quarter last quarter. That dip, marking the worst revenue in 14 years, had the stock sliding about 5 percent the next day.
This quarter's estimates call for a 4 percent year-over-year revenue decline. Shares of IBM are up about 16 percent so far this year.