By Seeking Alpha
Publication Date: 2026-09-26 00:00:00
IBM’s stock has fallen 10% since May and lagged behind other tech peers and the S&P 500, partly due to a soft Q2 with nearly flat revenue and a lowered full-year 2026 outlook. Despite this, IBM maintains strong profitability and free cash flow, supporting a fair value estimate of $281, which implies a 23% upside. The stock also offers a 2.98% dividend yield and an attractive earnings-based valuation. Although technical trends appear bearish ahead of Q3 earnings, the lowered expectations and robust free cash flow make IBM a reasonable value for patient investors.
