In the third quarter, Cullen Frost Bankers Inc. raised its stake in IBM by 3.8%, acquiring an additional 3,227 shares to reach a total holding of 88,856 shares valued at approximately $25.1 million. Global Assets Advisory LLC also boosted its position by 33.5%, purchasing 3,024 more shares to hold 12,044 shares worth $3.4 million at quarter-end. These moves contributed to the fact that institutional investors now own 58.96% of IBM’s outstanding shares, reflecting growing confidence among large asset managers in the company’s turnaround strategy and cash-flow generation capabilities.

IBM reported third-quarter revenue of $16.33 billion, up 9.1% year-over-year, driven by strength in its cloud and software segments. The company delivered earnings per share of $2.65, exceeding consensus estimates by $0.20, and achieved a net margin of 12.09%. Operating margin expanded modestly compared to the prior quarter, underscoring improved cost discipline and mix shift toward higher-value offerings. Return on equity reached 37.76%, highlighting efficient capital deployment during the integration of recent acquisitions.

Following the earnings release, Royal Bank of Canada upgraded IBM to ‘Outperform’ and increased its target to $350, citing accelerating adoption of hybrid cloud solutions. Jefferies raised its rating from ‘Hold’ to ‘Buy’ and boosted its price objective from $300 to $360, pointing to margin leverage as revenue scales. BMO Capital Markets maintained a ‘Market Perform’ stance but lifted its target to $305, reflecting confidence in the company’s consulting growth. Across 19 brokerages, the consensus rating is ‘Moderate Buy,’ with an average target of $306.86, suggesting upside potential from current levels.