
IBM (IBM) Stock Forecast & Price Target
IBM (IBM) Analyst Ratings
Bulls say
IBM reported software revenues of $9.03 billion for the quarter, surpassing expectations and reflecting a year-over-year growth of 11% in constant currency, bolstered by strong portfolio performance and increased adoption of automation and AI technologies. The company plans for fiscal year 2026 to achieve revenue growth exceeding 5% year-over-year, with free cash flow anticipated to rise by approximately $1 billion to $15.7 billion, signifying robust financial health and effective cash management strategies. Furthermore, with expectations for an expansion in operating pre-tax margin and a continued focus on the software verticals—particularly through Red Hat's contributions—IBM demonstrates a solid foundation for sustained growth in a competitive market.
Bears say
IBM is projected to experience a ~1.5% segment revenue decline by 2026, with risks stemming from intensifying competition, customer churn, and an inability to attract new clients. The company's Non-GAAP pre-tax margin of 24.1% falls short of expectations, highlighting challenges in its portfolio mix and productivity focus. Additionally, management anticipates only low-single digit growth in infrastructure, raising concerns about its adaptability and overall market positioning amidst a challenging macroeconomic environment.
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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