By Harshita Tyagi
Publication Date: 2026-10-22 10:20:00
IBM’s software revenue increased 8% year over year to $7.8 billion, while Transaction Processing returned to 9% growth after declining 8% in the second quarter.
- Jefferies raised its IBM price target, but said sustaining near-double-digit software growth in 2027 would require stronger organic execution in automation and data.
- Morningstar lifted its fair value for IBM stock, citing accelerating Red Hat bookings.
- Citi also raised its target on the stock to $280 from $245 and maintained a ‘Buy’ rating.
International Business Machines Corp. (IBM) shares fell nearly 6% despite multiple firms raising price targets, as analysts flagged challenges to sustaining the company’s software growth momentum into 2027.
IBM on Wednesday reported better-than-expected fiscal third-quarter (Q3) results, with revenue of $17.1 billion topping Fiscal.ai’s $16.84 billion consensus and adjusted earnings per share (EPS) of $2.95, beating the $2.87 estimate.
As of this writing, IBM stock was down nearly 6% in…
