
IBM (IBM) Stock Forecast & Price Target
IBM (IBM) Analyst Ratings
Bulls say
International Business Machines (IBM) reported software revenues of $9.03 billion, reflecting an 11% year-over-year growth in constant currency, which surpassed expectations primarily due to a strong performance within its diversified portfolio and a notable increase in automation and AI adoption. The company is projecting a revenue growth of over 5% year-over-year in constant currency for fiscal year 2026, along with an anticipated increase in free cash flow by approximately $1 billion to reach $15.7 billion, indicating robust cash generation capabilities. Additionally, IBM's defensive characteristics and improved execution have contributed to a positive market re-rating, as evidenced by an expected expansion in operating pre-tax margin and ongoing strength in its software vertical, particularly driven by Red Hat's growth in response to hybrid cloud and AI demand.
Bears say
The analysis indicates a projected revenue decline of approximately 1.5% in 2026, reflecting challenges in adapting to evolving customer needs and retaining existing clients amidst increasing competition. IBM's non-GAAP pre-tax margin fell to 24.1%, underperforming against expectations and prior year figures, which suggests weakened profitability driven by an unfavorable portfolio mix and ongoing productivity adjustments. Additionally, a significant portion of IBM's revenue relies on recurring contracts, yet the company’s inability to attract new business and a potential loss of market share could pose considerable risks to its future growth trajectory.
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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