What Are Wall Street Analysts’ Target Price for International Business Machines Stock?

With a market cap of  $231.6 billion, International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York, United States. It operates in segments including Software, Consulting, Infrastructure, and Financing, offering solutions in hybrid cloud, artificial intelligence, IT infrastructure, and business process services.

The IT giant has significantly outperformed the broader market over the past year. IBM stock has soared 33.9% over the past 52 weeks and 13.8% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 21.9% gains over the past year and 7.8% rise in 2025.

Zooming in further, IBM has also slightly outpaced the sector-focused Technology Select Sector SPDR Fund’s (XLK) 33.4% returns over the past year and a 13.2% gain in 2025.

On July 23, IBM released its Q2 2025 earnings, and its shares dropped 7.6% in the next trading session, as the software segment’s revenue came in at $7.39 billion, missing the expected $7.43 billion.

On a positive note, it posted revenue of $16.43 billion, up 2% year-over-year. Non-GAAP EPS of $2.52 beat expectations, while gross margin improved to 55.9% from 54.9% last year. IBM also reaffirmed its full-year outlook, targeting mid-single-digit revenue growth and approximately $12 billion in free cash flow.

For fiscal 2025, ending in December, IBM is expected to post non-GAAP earnings of $4.33 per share, reflecting 10.5% year-over-year growth. The company boasts a strong history of surpassing expectations, having beaten analysts’ earnings estimates in each of the past four quarters.

Among the 22 analysts covering IBM, the consensus rating is a “Moderate Buy.” The current consensus is based on nine “Strong Buy,” one “Moderate Buy,” 10 “Hold,” and two “Strong Sell” ratings.

This configuration is slightly more bullish than it was two months ago, when eight analysts issued “Strong Buy” recommendations.

On July 24, Bank of America Securities analyst Wamsi Mohan reiterated a “Buy” rating on IBM while lowering the price target from $320 to $310.

Its mean price target of $278.95 indicates a premium of 11.5% from the prevailing market prices. Additionally, the Street-high target of $350 implies an upswing potential of 39.9%.

On the date of publication, Kritika Sarmah 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. This article was originally published on Barchart.com