By Proactive
Publication Date: 2026-10-15 17:09:00
Bank of America expects International Business Machines Corp (NYSE:IBM), the technology and consulting group, to deliver a modest third-quarter earnings beat on October 21 while keeping its financial 2026 outlook unchanged.
The bank reiterated its ‘buy’ rating and $280 price target, citing IBM’s shift towards higher-margin software, improving profitability and strong free cash flow.
Bank of America forecasts third-quarter revenue of $16.8 billion and earnings per share of $2.82, with the potential for a slightly stronger performance from favourable currency movements and profitability.
The bank expects investors to focus on progress in converting delayed deals, signs of a recovery in customer spending and improving growth in Transaction Processing software.
Software growth remains below ideal levels, although Bank of…
