Shares of International Business Machines (IBM) reached a record high on Monday, pushing the company’s market capitalization past $250 billion for the first time in its history.
The stock has gained more than 23% year-to-date, driven by a series of acquisitions that have helped transition IBM from its legacy mainframe business into the fast-growing software and services sectors. Over the past 12 months, IBM shares have surged approximately 60%.
IBM has also been the subject of several recent analyst reports. Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on May 21st. UBS Group reaffirmed a “sell” rating and raised its price target from $160.00 to $170.00 on April 23rd, while BMO Capital Markets maintained a “market perform” rating that same day. Oppenheimer began coverage of IBM on February 11th, assigning an “outperform” rating and a $320.00 price target. Morgan Stanley lowered its price target from $237.00 to $233.00 and issued an “equal weight” rating in a note dated April 24th.
Among 23 brokerages, the consensus rating on IBM remains “Outperform”, with several firms boosting their price targets. Wedbush reiterated its $300 target, pointing to IBM’s widening margins and a stronger product mix as key positives.
In its most recent quarterly earnings report on April 23rd, IBM posted earnings per share of $1.60, beating analyst expectations of $1.42. The company reported $14.54 billion in revenue, slightly above the $14.41 billion forecast. Year-over-year, revenue was up 0.5%, though earnings per share declined from $1.68 in the same quarter last year. Analysts forecast full-year EPS of $10.78 for 2025.
Looking ahead, IBM is projecting full-year revenue growth of 5% or more and is guiding for approximately $13.5 billion in free cash flow. The company appears well-positioned to capitalize on sustained enterprise demand for AI and automation.
Bank of America has raised its price target on IBM stock from $270 to $290, while reiterating its Buy rating, citing the company’s solid fundamentals. Analysts highlighted the forthcoming launch of the z17 mainframe, which is expected to deliver advanced AI capabilities and improved security, as a significant growth catalyst. Additionally, IBM’s recent strategic acquisitions—most notably HashiCorp—are seen as key to expanding and reinforcing its hybrid cloud ecosystem.
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