IBM Stock: Evercore Raises Target to $330 as Earnings Date Approaches

TLDR

• IBM reports Q4 2025 earnings after market close on Wednesday, January 28, with analysts expecting $4.33 EPS and $19.23 billion in revenue
• Shares dropped 4.8% recently and trade at a P/E of 34.8, with institutional investors like Amundi and Raymond James increasing their stakes
• Company launched “Enterprise Advantage” consulting service and expanded watsonx AI platform with partners like e& telecom
• Analysts maintain “Moderate Buy” rating with average price target of $305.29, though some cite concerns about stretched valuation multiples
• Evercore ISI raised price target to $330 and expects Infrastructure strength and Consulting improvement to drive results

IBM prepares to release its fourth quarter 2025 results on Wednesday, January 28, after the market closes. Wall Street expects the tech company to report earnings of $4.33 per share on revenue of $19.23 billion.

International Business Machines Corporation, IBM

The earnings call is scheduled for 5:00 PM ET on January 28. Analysts project full-year earnings of approximately $11 per share for the current fiscal year and $12 per share for the next.

The company beat expectations in its last earnings report on October 22. IBM posted $2.65 earnings per share compared to the $2.45 consensus estimate. Revenue reached $16.33 billion for the quarter, topping the $16.10 billion analysts predicted.

That represented a 9.1% increase in quarterly revenue year-over-year. The company reported a net margin of 12.09% and return on equity of 37.76%. IBM earned $2.30 per share in the same quarter of the prior year.

Stock Performance and Valuation Metrics

Shares opened at $291.11 on Wednesday, down 4.8% from recent highs. The stock hit a 12-month high of $324.90 and a low of $214.50 during the past year.

IBM carries a market capitalization of $272.11 billion. The company trades at a price-to-earnings ratio of 34.82 and a P/E/G ratio of 2.96. The stock has a beta of 0.70.

The company maintains a current ratio of 0.93 and a quick ratio of 0.89. IBM’s debt-to-equity ratio stands at 1.97. The 50-day moving average sits at $302.94 while the 200-day moving average is $282.50.

Institutional investors have been adjusting their positions. Amundi increased its holdings by 17.9% in the third quarter, now owning 4.77 million shares worth $1.38 billion. Raymond James Financial boosted its stake by 3.6% during the second quarter to 3.09 million shares valued at $912 million.

California State Teachers Retirement System raised its position by 0.6% during the third quarter. The fund now holds 1.47 million shares worth $417 million. AQR Capital Management grew its holdings by 15.9% to 1.09 million shares valued at $310 million.

Institutional investors own 58.96% of IBM’s stock.

AI Platform Expansion Gains Momentum

IBM launched “Enterprise Advantage,” a new asset-based consulting service designed to help clients build and scale agentic AI platforms. The service ties into demand for IBM’s watsonx platform and represents a revenue-generating services push.

The company partnered with telecom operator e& to deploy enterprise-grade agentic AI for governance and compliance using watsonx Orchestrate. This partnership demonstrates traction for large-scale deployments in regulated industries.

IBM continues marketing watsonx across multiple sectors, including a collaboration with the Recording Academy around the Grammy Awards. These efforts highlight cross-industry use cases and brand visibility for the AI platform.

Analysts have issued mixed ratings on the stock. Royal Bank of Canada lifted its price target from $300 to $350 with an “outperform” rating on January 5. Evercore ISI raised its target to $330 from $315 and added IBM to its “Tactical Outperform list” ahead of earnings.

Wall Street Zen downgraded IBM from “buy” to “hold” on January 11. UBS Group maintains a “sell” rating while Sanford C. Bernstein kept its “market perform” rating. Weiss Ratings upgraded the stock from “hold” to “buy” on October 25.

The consensus rating stands at “Moderate Buy” with an average price target of $305.29. One analyst rates it “Strong Buy,” twelve assign “Buy” ratings, five give “Hold” ratings, and one maintains a “Sell” rating.

DBS Bank upgraded IBM from “Hold” to “Moderate Buy,” reflecting improved fundamentals and AI-driven growth expectations. Evercore ISI expects IBM to deliver in-line to slightly better results than consensus estimates, driven by Infrastructure strength and Consulting improvement.

For 2026, Evercore anticipates IBM will guide to growth at the lower end of its mid-single-digit target range. The firm expects about $15 billion in free cash flow for the year.

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