The current average analyst rating on the shares is "buy," with 14 "strong buy" or "buy," 11 "hold" and 2 "sell" or "strong sell" recommendations.
The average consensus recommendation for the IT services & consulting peer group is "buy."
Wall Street's median 12-month price target for International Business Machines Corp is $256.22, about 21.7% above its July 21 closing price of $210.50.
The stock recently traded at 17 times the next 12-month earnings, versus a P/E of 19 three months ago.
Outlook and segment performance
IBM now expects full-year constant-currency revenue growth of 4%-5%.
The company continues to expect full-year free cash flow to increase by about $1 billion year over year.
IBM expects improved pre-tax income margin expansion for the full year.
Software segment revenue rose 5%, led by AI-ready solutions such as Red Hat, watsonx, HashiCorp and Confluent.
Infrastructure revenue fell 7%, as IBM Z dropped 42%, offset in part by 37% growth in distributed infrastructure.
The company said it is driving productivity through AI, automation and supply chain optimization to support margin and free cash flow.
Quarterly results miss revenue expectations
IBM said second-quarter revenue rose 1% year over year, missing analyst expectations.
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