
IBM (IBM) Stock Forecast & Price Target
IBM (IBM) Analyst Ratings
Bulls say
International Business Machines (IBM) reported a strong performance in its software segment, achieving revenues of $9.03 billion, which represents an 11% year-over-year increase in constant currency and surpasses market expectations, driven by robust growth in automation and AI adoption. The company returned $1.57 billion to shareholders in dividends during the quarter and anticipates a significant increase in free cash flow to approximately $15.7 billion for FY26, demonstrating effective capital management and operational leverage. Additionally, IBM expects revenue growth of over 5% for FY26, supported by an emphasis on its software vertical and strategic partnerships, contributing to an overall positive outlook for the company's financial performance.
Bears say
IBM faces a negative outlook due to heightened competitive pressures, particularly from emerging technologies like Anthropic's Claude Code, which threatens its traditional business model reliant on legacy systems. Additionally, the company's financial performance indicators reveal concerning trends, including a forecasted revenue decline of approximately 1.5% for 2026, a non-GAAP pre-tax margin of 24.1% that falls short of expectations, and a reduced cash flow from operations of $4.04 billion compared to $4.30 billion in the prior year. These factors, combined with the impact of AI-driven automation and its associated risks, contribute to a perception of increasing vulnerability in IBM’s market position.
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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