By Moz Farooque ACCA
Publication Date: 2026-01-14 13:04:00
This article first appeared on GuruFocus.
International Business Machines (NYSE:IBM) heads into its Jan. 28 earnings report with Goldman Sachs expecting 2026 guidance to point to steadily improving demand as customer spending shows signs of stabilization.
Goldman said it expects IBM’s 2026 outlook to reflect modest organic revenue acceleration, supported by gradually improving enterprise demand even as companies remain selective with discretionary IT budgets. The firm maintained its Buy rating and $350 price target, while nudging its 2026 EPS forecast up to $11.50 from $11.40 and lifting its 2028 estimate to $13.30.
The bank expects IBM to guide toward constant currency revenue growth near the mid single digit range, modeling 4.4% growth to $70.3 billion, roughly in line with Street expectations. Goldman also sees free cash flow topping $15 billion in 2026, with software performance remaining a key focus following IBM’s planned $11 billion acquisition of Confluent…