These Analysts Boost Their Forecasts On IBM Following Upbeat Q3 Results

Key takeaways

• IBM’s Q3 results beat expectations and analysts are raising price targets, but the stock saw a slight decline as investors digest the mixed outlook.
• Revenue Q3: $17.10 billion (consensus $16.82 billion)
• Adjusted EPS Q3: $2.95 (consensus $2.86)
• Full‑year 2026 revenue outlook: $70.24 billion to $70.91 billion

What happened

IBM (NYSE: IBM) reported third‑quarter revenue of $17.10 billion, beating the consensus estimate of $16.82 billion, and adjusted earnings of $2.95 per share versus expectations of $2.86 per share. The company reiterated its full‑year 2026 revenue outlook at $70.24 billion to $70.91 billion, unchanged from prior guidance, and lifted its free‑cash‑flow forecast to more than $1 billion year‑over‑year, up from an earlier “about” $1 billion. Following the earnings release, several analysts raised…

Why it matters

The stronger revenue and earnings numbers suggest IBM’s cloud‑and‑AI initiatives are gaining traction, supporting its long‑term growth narrative. The upward revision of free‑cash‑flow expectations signals improved operating efficiency and a stronger balance‑sheet position. Analyst upgrades reflect renewed confidence…

Short-term and longer-term

Short-term. In the next day or two, watch for short‑term volatility as traders react to the modest share decline and the new price‑target levels.

Longer-term. Over the coming months, the upgraded price targets and improved free‑cash‑flow outlook may enhance IBM’s long‑term valuation, especially if the company continues to scale its Super Intelligence offerings.