By Proactive Investors
Publication Date: 2026-10-15 00:00:00
Bank of America forecasts that IBM will deliver a modest earnings beat for the third quarter, with revenue expected at $16.8 billion and earnings per share at $2.82. The bank maintains a ‘buy’ rating and a $280 price target, citing IBM’s strategic shift towards higher-margin software, improving profitability, and strong free cash flow. While software growth remains below ideal levels, strength in Red Hat’s products and expansion in data business are positive signs. Bank of America views 2026 as a transitional year for IBM, anticipating stronger operating performance and improved software growth and margins in 2027.
