Proactive Investors
15 Oct 2026, 18:46 UTC · 1h ago
IBM poised for modest third-quarter beat, says Bank of America
Impact · against what's priced in
Bank of America's forecast for a modest Q3 beat and a slight reduction in FY2026 estimates is largely neutral, as the market is already focused on whether delayed software deals will convert. The heavy reliance on acquisitions to drive software growth confirms that organic momentum has not yet returned to the levels required by the current valuation.
- IBM−0.10
Challenges what's priced in
- The price assumes
Software segment growth resuming to roughly 7.5% annually
The price assumes a 7.5% software growth rate to support the overall valuation, but BofA forecasts only 4.5% reported growth and a meager 1% organic growth for FY2026.
What IBM's price assumes · Aug 26
