In the third quarter, Donaldson Capital Management LLC increased its IBM position by 1,510.3%, acquiring an additional 150,831 shares to reach a total holding of 160,818 shares. This position now represents 1.4% of the firm’s investment portfolio and is its 28th largest holding. At the end of the reporting period, Donaldson Capital’s IBM stake was valued at $45.38 million, reflecting a significant conviction in the company’s midterm growth prospects and underlying cash flows.

IBM reported fourth-quarter revenue of $19.69 billion and non-GAAP earnings per share of $4.52, exceeding consensus estimates by $0.19 and $0.46 billion, respectively. Revenue grew 12.2% year-over-year, driven by a 14% increase in software and a 21% rise in infrastructure segments, powered by AI-related deployments and enterprise cloud migrations. Management raised its full-year 2026 revenue outlook above Street consensus, citing robust demand for its Watsonx and Red Hat platforms and expects AI-inference workloads to shift closer to on-premise solutions.

Over the past quarter, at least six major brokerages revised their views on IBM. Bank of America increased its price target by $20 to $335 and maintained a buy rating after the Q4 beat, Erste Group upgraded from hold to buy, and Weiss Ratings reiterated a buy (b) assessment. At the same time, one firm downgraded to hold. Among the 19 analysts covering the stock, one issues a strong buy, 12 carry buys, five hold, and one a sell recommendation, resulting in a consensus Moderate Buy stance and an average target of $330.07.

IBM’s board elected Ramon L. Laguarta, chairman and CEO of PepsiCo, effective March 1. At 62, he brings two decades of leadership in global operations and digital transformation, having overseen strategic technology rollouts and cultural shifts at PepsiCo since 2018. His appointment aligns with IBM’s focus on enterprise governance and long-term value delivery, and follows recent moves to enhance AI and cloud strategy under CEO Arvind Krishna.