Wall Street Analysts Boost Confidence in IBM’s Strategic Direction

A wave of upgraded assessments from major financial institutions is generating positive momentum for International Business Machines Corp. (IBM) this week. The renewed analyst confidence underscores a belief that the technology giant's multi-year transformation is yielding tangible results, with the company also setting the date for its upcoming quarterly earnings release.

IBM provided a key update to the market, scheduling the announcement of its fourth-quarter 2025 financial results. The figures will be published after the market closes on Wednesday, January 28, 2026, at 5:00 PM Eastern Time. Market experts are anticipating revenue to reach approximately $19.23 billion. Investor attention is expected to center on the performance of the software division, growth within the Red Hat unit, and signs of a rebound in the consulting segment.

Revised Targets from Financial Heavyweights

The optimistic sentiment gained traction following a series of revised evaluations from top-tier investment banks.

Analysts at Bank of America Securities reinforced their "Buy" recommendation for IBM shares, lifting their price objective from $315 to $335. Strategist Wamsi Mohan noted that while 2026 may see more moderate performance following an anticipated strong 2025, the long-term outlook remains favorable. This perspective is supported by expectations for expanding software margins and a resilient free cash flow trajectory.

Should investors sell immediately? Or is it worth buying IBM?

Echoing this constructive view, Goldman Sachs issued its own forecast for 2026. The firm projects mid-single-digit revenue growth on a constant-currency basis, alongside a free cash flow exceeding $15 billion. Goldman analysts anticipate that IBM's forthcoming guidance will reflect an improving demand environment from its client base.

Transformation Strategy Bears Fruit

The foundation for this analyst optimism lies in IBM's executed strategic pivot. The company's evolution from a hardware-centric operation to a software and solutions leader focused on artificial intelligence and hybrid-cloud platforms is viewed as a critical success factor. Key moves, including the acquisition of Red Hat and the spin-off of its infrastructure services business into Kyndryl, are seen as central to this shift. Investments in the watsonx AI platform are now positioned to drive value.

Bank of America forecasts overall revenue growth of around five percent for 2026. The market's reaction to the recent analyst commentary suggests that Wall Street is betting on the continuation of IBM's positive trajectory. The stock's advance of over 40 percent during the past twelve months has notably outperformed the S&P 500 index. The quarterly report on January 28 will serve as the next major test for validating these heightened expectations.