New York, Jan 23, 2026, 15:42 EST — Regular session
- IBM shares dipped Friday afternoon, lagging behind several other megacap tech giants.
- IBM Consulting unveiled a new partnership focused on “quantum-safe” security, sparking investor repositioning ahead of earnings week.
- Traders focus on software growth and 2026 guidance, tuning out the headlines.
Shares of International Business Machines Corp dipped roughly 1.1% to $291.51 on Friday, hitting a low near $290.00 during the session.
IBM’s stock remains on the radar heading into next week, as earnings and the 2026 outlook take center stage. Investors are zeroing in on software growth and consulting demand, the key areas under scrutiny.
Timing is tight. Earnings season is speeding along, and the market has been quick to punish firms that dial back spending or delay growth.
U.S. stocks showed a mixed picture: the S&P 500 and Nasdaq nudged up, driven by gains in megacap tech names. Intel, however, took a hit, tumbling on a forecast that fell short of expectations.
Keyfactor announced Thursday a joint offering with IBM Consulting designed to help companies map and update their cryptography in preparation for post-quantum cryptography (PQC), the next generation of encryption built to withstand future quantum computer attacks. “Cryptography sits at the center of every digital interaction, yet most enterprises struggle to see or understand the full scope of their cryptographic footprint,” said Keyfactor CTO and co-founder Ted Shorter. Dinesh Nagarajan, cybersecurity partner at IBM Consulting, described the shift as “a major operational” change requiring alignment across “people, processes, and technology.” PR Newswire
Jefferies analysts noted Thursday that IBM’s software growth could pick up again in 2026, driven by Red Hat. They kept a buy rating with a $360 price target. The firm highlighted roughly 20% growth in Red Hat bookings and rising demand for subscription products like OpenShift and Ansible. (Bookings refer to new orders, not revenue.)
Evercore’s Amit Daryanani bumped his price target on IBM to $330 from $315, labeling the setup “favorable” ahead of the earnings report and dubbing the software outlook “de-risked.” TipRanks
IBM is sitting on a major deal announced last December: the $11 billion acquisition of data-streaming firm Confluent. The deal isn’t expected to finalize until mid-2026, pending regulatory and shareholder approval.
The risk is straightforward: if IBM’s outlook sounds cautious or software growth doesn’t materialize in the results, the stock could drop fast. A weak report on consulting demand or softer cash flow would probably hit hard in this tape.
IBM is set to host its quarterly earnings call on Wednesday, Jan. 28 at 5:00 p.m. ET, following the release of its Q4 2025 results. Investors will focus on the company’s outlook for 2026, plus any insights into software and consulting performance, along with details on how recent acquisitions are being integrated.
