IBM (IBM) Expects 4.4% Revenue Growth in 2026, Acquires Confluent for $11B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Source: seekingalpha
- Earnings Release Preview: IBM is set to release its Q4 2025 financial results on January 28, with analysts expecting 2026 guidance to indicate modest organic revenue acceleration, reflecting gradually improving customer demand despite ongoing IT budget rationalization.
- Earnings Forecast Upgrade: Goldman Sachs raised IBM's 2026 EPS estimate from $11.40 to $11.50, along with slight increases for 2027 and 2028, indicating confidence in the company's future profitability amid a stabilizing market.
- Cash Flow Outlook: Goldman Sachs anticipates IBM will generate over $15 billion in free cash flow in 2026, modeling $15.1 billion, which underscores the company's robust cash generation capabilities and potential for future investments.
- Acquisition Plan: IBM announced its intention to acquire data streaming pioneer Confluent for approximately $11 billion, with the deal expected to close by mid-2026, further enhancing IBM's competitive position in the data processing sector.
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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: 258.270
Low
210.00
Averages
315.80
High
375.00
Current: 258.270
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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