Quick Read – IBM trades at $329 after a 31% weekly surge, but a pullback to $260 would compress the forward multiple and restore a real margin of safety. – IBM’s generative AI book surged from $7.5 billion to $12.5 billion in just three quarters, signaling accelerating…
terprise demand for its AI platform. – IBM generated $14.73 billion in 2025 free cash flow, with management guiding roughly $1 billion more in 2026 on 5%-plus revenue growth. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and IBM wasn’t one of them. Get them here FREE
At $329.23, International Business Machines (NYSE:IBM) trades well above the roughly $260 level that some value-oriented frameworks would flag as a more compelling entry point. The stock has climbed 31.33% in one week and 42.83% in one month, rewarding owners and punishing those chasing the rally. Big Blue has shed its legacy hardware drag.
Software now anchors the model at $7.05 billion in Q1 2026 revenue, up 11.3%, with Data up 19%. Infrastructure rode an IBM Z refresh to 15.3% growth, with the mainframe surging 51% and segment margin expanding from 8.6% to 15.8%. Why The Bull Case Looks Loaded Full-year 2025 free cash flow reached $14.73 billion, and management guides to roughly $1 billion incremental FCF lift in 2026 on 5% plus constant currency revenue growth.