IBM Set to Report Q4 Results as Evercore Stays Cautious, Stifel Reaffirms Buy

Overview

• Evercore ISI reiterated an Underperform rating with a $330 price target ahead of the January 28 report, projecting about $19.2 billion in revenue and $4.29 in EPS.
• The firm expects IBM to outline 2026 growth near the low end of its mid-single-digit target, at least one point of pre-tax margin expansion, and roughly $15 billion in free cash flow.
• Evercore highlights progress on efficiency efforts, estimating around $4.5 billion in gross run-rate cost savings by the end of 2025.
• Stifel reaffirmed a Buy rating with a $325 target, maintaining 2026 estimates that assume about 4% revenue growth, margin expansion, $12.23 EPS, and $15 billion in free cash flow, with the pending Confluent deal seen as modestly dilutive once closed.
• Recent commentary frames IBM’s AI and hybrid-cloud pivot as the driver of momentum, with the stock up nearly threefold since late 2022 and more than 40% over the past year, and Jim Cramer expressing ongoing confidence.