IBM Stock Surges 7.7% After Strong Q4 Results and 2026 Growth Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: stocktwits
- Software Revenue Growth: IBM's Q4 software revenue increased by 12% year-over-year to $19.7 billion, surpassing Wall Street's expectations of $19.23 billion, demonstrating strong performance in software and consulting that solidifies its market position.
- AI Business Surge: The company's AI business grew by 32% quarter-over-quarter, with total business exceeding $12.5 billion; CEO Arvind Krishna noted that customers are shifting from experimentation to scaling, indicating significant future growth potential.
- 2026 Revenue Outlook: IBM expects revenue growth of over 5% in 2026, slightly above analysts' forecast of 4.6%, reflecting ongoing investments and market confidence in its software and AI sectors.
- Market Sentiment Shift: On Stocktwits, retail sentiment for IBM flipped from 'bearish' to 'bullish' amid a surge in message volume, with investors expressing confidence in the stock reaching $350 by year-end, highlighting optimism about IBM's future performance.
Analyst Views on IBM
Wall Street analysts forecast IBM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IBM is 315.80 USD with a low forecast of 210.00 USD and a high forecast of 375.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 293.860
Low
210.00
Averages
315.80
High
375.00
Current: 293.860
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.
