In the third quarter, Cullen Frost Bankers Inc. expanded its holding in International Business Machines Corporation by purchasing an additional 3,227 shares, bringing its total to 88,856 shares. This 3.8% increase raised the firm’s exposure to the technology company to approximately $25.1 million, reflecting confidence in IBM’s mid-market software and services segments. Institutional ownership of IBM remains robust at 58.96%, underscoring continued interest from large asset managers in the company’s transformation strategy.

During the quarter ended September 30, IBM reported revenue of $16.33 billion, marking a 9.1% year-over-year increase, and delivered earnings per share of $2.65, exceeding the consensus forecast by $0.20. The company’s net margin stood at 12.09%, while return on equity reached 37.76%. These results were driven by strength in hybrid cloud and artificial intelligence software sales, as well as improved operating leverage in consulting services.

Following the earnings release, several research firms adjusted their outlooks. Royal Bank of Canada upgraded its recommendation to outperform and raised its twelve-month target from $300 to $350. Jefferies Financial Group moved its rating from hold to buy and increased its target from $300 to $360. BMO Capital Markets maintained a market-perform view but lifted its target to $305. On balance, out of nineteen analysts covering IBM, thirteen now hold a buy or stronger recommendation, five remain neutral, and one maintains a sell rating, resulting in a consensus view of moderate buy.