IBM CFO Discusses Company Transformation and AI Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy IBM?
Source: Fool
- Shareholder Value Creation: IBM has created more value for shareholders in the past three years than in the previous 111 years combined, showcasing significant achievements during its transformation and boosting investor confidence while attracting more investments.
- Revenue Growth Model: Jim Kavanaugh noted that IBM's revenue growth model has achieved sustainable growth over the past three years, with operating margins improving by 1,000 basis points, indicating success in optimizing business structure and enhancing profitability.
- AI Business Expansion: IBM's AI business reached $12.5 billion in 2025, growing 30% year-over-year, reflecting rapid growth in investment and market demand in the AI sector, further solidifying its market position.
- Strategic Investment and Acquisitions: The acquisition of Confluent is seen as a crucial part of IBM's AI strategy, expected to enhance the company's data streaming capabilities and drive widespread AI technology adoption, thereby improving overall business competitiveness.
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Analyst Views on IBM
Wall Street analysts forecast IBM stock price to rise
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 241.670
Low
210.00
Averages
315.80
High
375.00
Current: 241.670
Low
210.00
Averages
315.80
High
375.00
About IBM
International Business Machines Corporation is a provider of global hybrid cloud and artificial intelligence (AI) and consulting expertise. The Company’s segments include Software, Consulting, Infrastructure and Financing. The Software segment includes hybrid cloud and AI platforms, which allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on integrating skills on strategy, experience, technology and operations by domain and industry. The Infrastructure segment is focused on the hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions. In addition, it offers a portfolio of life-cycle services for hybrid cloud infrastructure deployment. The Financing segment provides client and commercial financing, facilitating its clients’ acquisition of hardware, software and services. It helps clients in more than 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Tech Stock Volatility: Although the author missed an opportunity to pay off credit card debt due to negative coverage in a market magazine, he notes that tech stocks can rebound strongly after short-term downturns, demonstrating the resilience and long-term growth potential of the tech sector.
- Importance of Quality Companies: The author stresses that successful investing hinges on selecting companies with strong moats and excellent products, rather than merely focusing on their classification as tech stocks, as this strategy helps maintain stable returns amid market turbulence.
- Market Sentiment and Decision-Making: In the current market environment, the author warns investors against hastily exiting due to short-term fluctuations, encouraging more rational reasons for investment decisions to avoid making impulsive sell-offs driven by fear.
See More
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Concerns Surrounding AI: There are significant fears regarding AI's impact on jobs, privacy, profit margins, and the integrity of information.
Contrasting Perspectives: The narrative around AI fluctuates between optimism about its capabilities and a sense of impending doom regarding its consequences.
Rapid Shifts in Sentiment: Public perception of AI can change dramatically within short timeframes, reflecting both hope and anxiety.
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