/International%20Business%20Machines%20Corp_%20logo%20on%20phone-by%20rafapress%20via%20Shutterstock.jpg)
Founded in 1911, Armonk, New York-based International Business Machines Corporation (IBM) provides integrated solutions and services in the Americas and internationally. The company has a market capitalization of $279.4 billion and offers hybrid cloud and AI platforms, on-premises and cloud-based servers, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment.
Shares of International Business Machines have outperformed the broader market over the past year, surging 18% compared to the S&P 500 Index's ($SPX) 14% surge. However, in 2026, the stock has risen marginally, underperforming the SPX’s 1.3% rise.
Zooming in, IBM has underperformed the State Street Technology Select Sector SPDR ETF (XLK) over the past year but has edged past the ETF year-to-date. XLK rose 20.2% over the past 52 weeks and declined 2% this year.
IBM shares rose 5.1% on Jan. 29 following the company’s release of its better-than-expected Q4 2025 earnings. The company’s revenue increased 12.1% year-over-year to $19.7 billion and successfully surpassed Wall Street estimates. Moreover, its adjusted EPS amounted to $4.52, also beating Street’s estimates by 4.4%.
For the current year, ending in December 2026, analysts expect IBM’s EPS to rise 6.6% YoY to $12.35 on a diluted basis. The company’s earnings surprise history is good. It surpassed the consensus estimate in each of the last four quarters.
Among the 22 analysts covering IBM stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, two “Moderate buys,” eight “Holds, and two “Strong Sells.”
The configuration has become slightly more bullish in recent months, with the stock now carrying 10 “Strong Buy” ratings, up from 9 two months ago.
On Jan. 29, Jefferies analyst Brent Thill maintained a “Buy” rating for IBM stock and set a price target of $370.
IBM’s mean price target of $319.67 suggests upside potential of 6.9% from the current market prices. Its Street-high target of $380 suggests the stock could rally by as much as 27.1%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
/Alphabet%20(Google)%20Image%20by%20Piotr%20Swat%20via%20Shutterstock.jpg)