Investment Outlook: Oppenheimer has initiated coverage of IBM with an outperform rating and a price target of $360, suggesting a 24% upside due to anticipated growth in its software portfolio.
Software Growth: Analyst Param Singh forecasts a 10% compound annual growth rate for IBM's software segment over the next two years, driven by strengths in automation and Red Hat.
Consulting Revenue Recovery: IBM's consulting revenue showed positive growth in Q3 2025, with expectations for low single-digit growth moving forward, as organizations leverage AI infrastructure.
Margin Expansion: Singh believes that IBM's transition to a software-centric model will lead to higher gross and pre-tax margins, justifying a re-rating of the stock to align with industry averages.
Wall Street analysts forecast IBM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for IBM is 295.18 USD with a low forecast of 210.00 USD and a high forecast of 350.00 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.
13 Analyst Rating
Wall Street analysts forecast IBM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for IBM is 295.18 USD with a low forecast of 210.00 USD and a high forecast of 350.00 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.
7 Buy
5 Hold
1 Sell
Moderate Buy
Current: 302.720
Low
210.00
Averages
295.18
High
350.00
Current: 302.720
Low
210.00
Averages
295.18
High
350.00
RBC Capital
Outperform
maintain
$300 -> $350
2026-01-05
Reason
RBC Capital
Price Target
$300 -> $350
2026-01-05
maintain
Outperform
Reason
RBC Capital raised the firm's price target on IBM to $350 from $300 and keeps an Outperform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.
Erste Group
Hold -> Buy
upgrade
2025-12-05
Reason
Erste Group
Price Target
2025-12-05
upgrade
Hold -> Buy
Reason
Erste Group upgraded IBM to Buy from Hold following the "good" Q3 report. The firm sees the company's sales increasing more than expected in 2026. The shares should rally on IBM's positive outlook and price gains, the analyst tells investors in a research note.
Oppenheimer
Oppenheimer
Outperform
initiated
$360
2025-11-21
Reason
Oppenheimer
Oppenheimer
Price Target
$360
2025-11-21
initiated
Outperform
Reason
Oppenheimer initiated coverage of IBM with an Outperform rating and $360 price target. The firm says its bullish stance is predicated on its belief IBM's software portfolio should see sustained "double-digit" revenue growth driven by strength in Automation and improving growth in RedHat, consulting should grow at a sustained "low single digits" with recovery in application development/management, and additional revenue optionality with creation and management of AI applications. Oppenheimer believes these drivers will result in strong expansion activity with existing customers, and drive continued gross and pre-tax margin expansion. The stock should also re-rate higher when IBM's pivot to software is more widely appreciated, it adds.
Melius Research
Benjamin Reitzes
Buy
maintain
2025-10-31
Reason
Melius Research
Benjamin Reitzes
Price Target
2025-10-31
maintain
Buy
Reason
After having spent a day at IBM's quantum lab and meeting with Jay Gambetta, Director of IBM Research, Melius Research analyst Benjamin Reitzes reiterates a Buy rating on the shares, telling investors that IBM has the most quantum computers in use today, "by far," and arguing that its potential in quantum "looks like it could amount to billions of high-margin annualized revenue" starting in 2029. The "Starling" line of quantum computers has the potential to unlock capabilities to run revolutionary applications on a 200 qubit platform with an error correction rate that "finally allows this technology cross the chasm," according to the analyst, who adds that IBM seems to have "the ingredients to win in Quantum since it arguably has the best hardware roadmap and the mindshare of developers with its Qiskit platform."
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.
