On January 4, 2026, Jefferies upgraded IBM shares from Hold to Buy and lifted its target to $360, implying a 23.5% potential gain over current levels. This upgrade follows a year in which IBM’s share value rose 33%, outpacing Microsoft’s 14.2% and Amazon’s 2.9% advances. Jefferies cited robust demand for hybrid cloud and AI offerings as the primary drivers behind its more optimistic outlook.

IBM continues to solidify its leadership in quantum computing, nearing $1 billion in cumulative contract signings for quantum hardware and services. The company recently unveiled a next-generation quantum processor with improved qubit fidelity and formed a strategic collaboration with Cisco to develop quantum networking technology. These initiatives underpin IBM’s long-term roadmap to deliver commercially viable quantum solutions for logistics, materials science and advanced AI workloads.

In the third quarter, Asset Management One Co. Ltd. trimmed its stake by 1.3%, leaving it with 521,180 shares valued at $147.06 million, while several hedge funds modestly increased positions during the period. IBM’s Q3 revenue rose 9.1% year-over-year to $16.33 billion, and adjusted EPS surpassed consensus by $0.20. The company reported a net margin of 12.09% and ROE of 37.76%, reinforcing confidence among institutional investors who now own 58.96% of the outstanding shares.