Monday, December 29, 2025

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Cisco Systems, Inc. (CSCO) and IBM Corp. (IBM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> Pre-Markets Lower on Low Seasonal Volume

Today's Featured Research Reports

Apple’s shares have outperformed the Zacks Computer - Micro Computers industry over the past six months (+33.5% vs. +32.6%). The company is benefiting from strong growth in its Services revenues. The company now has more than 1 billion paid subscribers across its Services portfolio. The new iPhone 17 series is expected to drive top-line growth. Expanding capabilities of AI Intelligence is noteworthy. 

Apple expects the December quarter’s (first-quarter fiscal 2026) net sales to grow between 10% and 12% on a year-over-year basis. The company expects iPhone sales to grow in double digits year over year. The Mac segment is expected to face a tough year-over-year comparison, and Services are expected to grow at the 2025 rate. 

However, gross margin is expected to be 47-48% in the first quarter of fiscal 2026, including a tariff impact of $1.4 billion. Increasing regulatory headwinds and tariffs are a concern. 

(You can read the full research report on Apple here >>>)

Shares of Cisco have outperformed the Zacks Computer - Networking industry over the past six months (+14% vs. +13.6%). The company’s business model has evolved with subscription revenues accounting for more than half of its total revenues. An increase in recurring revenue base bodes well for investors. Splunk's acquisition enhances the company’s recurring revenue base. 

The buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in ARR and making it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco’s security portfolio. 

Networking sales benefited from strong demand for AI infrastructure and campus networking solutions. Product orders from service provider and cloud customers were strong driven by high double-digit order growth in hyperscalers. However, stiffening competition is a headwind.

(You can read the full research report on Cisco here >>>)

IBM’s shares have gained +4.8% over the past six months against the Zacks Computer - Integrated Systems industry’s gain of +47.8%. The company is betting big on the Watsonx platform, which is likely to be its core technology platform for AI capabilities. The company’s focus on quantum technology for solutions to complex problems beyond the reach of classical computing is a tailwind. 

IBM is benefiting from a surge in demand for heterogeneous, dynamic and complex infrastructure strategies, which have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management. This, in turn, has led to sustainable growth through advanced technology and deep consulting expertise. 

However, weakness in its traditional business and foreign exchange volatility remain concerns. Macroeconomic headwinds are worrisome. IBM’s acquisition spree has also escalated integration risks, while its high debt level is burdensome.

(You can read the full research report on IBM here >>>)

Other noteworthy reports we are featuring today include HSBC Holdings plc (HSBC), Rollins, Inc. (ROL) and Summit Therapeutics Inc. (SMMT).

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>