New York, Jan 14, 2026, 14:17 EST — Regular session
- IBM shares climbed roughly 1% in afternoon trading, beating the decline seen in major U.S. equity ETFs
- BofA Securities lifts its price target on IBM to $335, maintaining a Buy rating
- IBM will release its fourth-quarter earnings and hold a results call on Jan. 28, after markets close
International Business Machines Corp. shares climbed roughly 1% on Wednesday, defying a broader U.S. equity retreat. The company scheduled its quarterly results call for Jan. 28 and received a new price-target boost from Bank of America Securities. IBM gained 1.0% to $306.34, even as the tech-focused Invesco QQQ Trust slipped about 1.5%.
This shift is crucial as IBM approaches a major earnings report during the peak of U.S. earnings season, a time when portfolio managers often react swiftly to guidance and cash flow signals. Investors want clear insight into whether software growth will balance out weaknesses in consulting and infrastructure.
IBM announced on Wednesday that it will host its quarterly earnings call for the fourth quarter of 2025 on Jan. 28 at 5 p.m. ET, following the close of U.S. markets. After the call, the company plans to share prepared remarks and a replay online.
Just a day earlier, BofA Securities analyst Wamsi Mohan boosted his price target on IBM from $315 to $335, maintaining a Buy rating. He noted that after a robust 2025, the path looks “tougher” for IBM heading into 2026, with several headwinds expected in the coming quarter. StreetInsider.com
Mohan anticipates a $400 million charge for workforce rebalancing in Q4. He noted this could limit IBM’s year-over-year pretax income margin growth to roughly 70 basis points. (A basis point equals 0.01 percentage point.)
Looking ahead to 2026, Mohan anticipates IBM will forecast around 10% software revenue growth on a currency-adjusted basis, excluding foreign-exchange effects. He also expects low single-digit growth in consulting, while infrastructure revenue should hold steady. Additionally, Mohan projects IBM will guide to roughly $15 billion in free cash flow, a key metric for investors.
IBM’s plan to acquire Confluent is still in play. Back in December, IBM agreed to pay $31 per share in cash for the data-streaming company, putting the deal’s value at $11 billion. The deal is expected to wrap up by mid-2026.
IBM’s CEO Arvind Krishna said the deal would enable enterprises to deploy “generative and agentic AI better and faster,” by enhancing trusted data flow across systems. Confluent’s CEO Jay Kreps highlighted the company’s plan to tap into IBM’s “go-to-market expertise” and scale. IBM Newsroom
Wednesday’s rally could unravel fast if the upcoming earnings report falls short. A heavier restructuring charge, weaker software sales, or a drop in consulting demand might weigh on the stock. Plus, the Confluent deal still awaits both shareholder and regulatory green lights.
Traders are keen to see if IBM shifts its margin outlook or sets a clear timeline for folding in Confluent without disrupting sales momentum. The way IBM balances software growth against consulting will probably carry the most weight.
IBM will report its fourth-quarter 2025 earnings and hold the conference call on Jan. 28 at 5 p.m. ET. The webcast will be available on the company’s investor events page.
