By Aanchal Sugandh
Publication Date: 2026-04-12 13:15:00
The global technology sector rarely stays calm when economic signals start shifting, and earnings season only amplifies that tension. Big enterprise names usually take the first hit, and International Business Machines Corporation (IBM) now finds itself squarely in focus after Needham & Company trimmed expectations.
The firm cut its price target on IBM stock by 14.7% ahead of its Q1 fiscal 2026 results due on Wednesday, Apr.22, after market close. Analyst David Grossman reworked his 2026 model to account for a messy mix of crosscurrents.
He factored in potential pressure from the U.S.-Iran war upon software and services growth, even as the early closing of the Confluent acquisition adds a clear tailwind. However, foreign exchange movements remain a meaningful drag.
Grossman now sees 2026 constant currency revenue growth landing between 4.5% and 5%, just under the 5% consensus and company guidance. He expects pre-tax income (PTI) margins to expand by 100 basis…
