
IBM (IBM) Stock Forecast & Price Target
IBM (IBM) Analyst Ratings
Bulls say
The positive outlook for IBM's stock is supported by its strong software revenue performance, which reached $9.03 billion, reflecting an 11% year-over-year increase and surpassing analyst expectations. The company anticipates revenue growth exceeding 5% year-over-year for FY26, driven by the focus on its software vertical and an expected increase in free cash flow to $15.70 billion, signifying efficient capital management and operational leverage. Additionally, IBM's total revenues of $19.69 billion, up 9% year-over-year, coupled with the expansion of operating margins, underscore the company's robust execution and resilience in a competitive market.
Bears say
The financial outlook for IBM appears negative due to heightened competition risks, particularly from emerging technologies like Anthropic's Claude Code, which could threaten IBM's legacy system business reliant on COBOL. Additionally, the company's non-GAAP pre-tax margin of 24.1% fell short of both analyst estimates and previous periods, primarily due to workforce rebalancing charges and an unfavorable portfolio mix. Furthermore, IBM's operating cash flow decreased to $4.04 billion from $4.30 billion year-over-year, reflecting challenges in maintaining financial momentum amid evolving industry dynamics.
This aggregate rating is based on analysts' research of IBM and is not a guaranteed prediction by Public.com or investment advice.
IBM (IBM) Analyst Forecast & Price Prediction
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