IBM, US4592001014

BMO raises target for IBM stock from USD 230 to USD 265

Published on 10/23/2026 at 11:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

IBM reported USD 17.10 billion in third-quarter revenue on October 21, 2026. IBM stock costs EUR 222.70 versus the EUR 222.60 Xetra close.

Target change and earnings context

BMO Capital lifted its IBM target to USD 265.00 from USD 230.00 on October 22, 2026.
Third-quarter revenue reached USD 17.10 billion on September 30, 2026, up 5.00 percent year over year.
IBM stock trades at EUR 222.70 at 11:05 a.m. CEST at Lang & Schwarz on October 23, 2026, 0.04 percent above the Xetra close of October 22, 2026.

Extreme close-up macro photograph of a quantum computer dilution refrigerator chandelier, cascading tiers of gold-plated connectors and coiled copper wires in concentric rings, cool blue-white cryogenic laboratory lighting illuminating the warm metallic s — IBM Quantencomputer mit goldenem Chandelier aus Kupferdrähten unter kalter blauer Laborbeleuchtung US4592001014, Illustration mit AI erstellt.

IBM (ISIN US4592001014) had its stock target raised by BMO Capital from USD 230.00 to USD 265.00 on October 22, 2026, while the firm kept its Market Perform rating, according to TokenPost. IBM had reported third-quarter revenue of USD 17.10 billion on October 21, 2026.

IBM raises cash-flow outlook

IBM's third-quarter revenue increased 5.00 percent year over year, while constant-currency growth reached 6.00 percent. The company also reported GAAP net income of USD 2.19 billion and diluted earnings per share of USD 2.30 for the quarter ended September 30, 2026, according to IBM. Software revenue rose 8.00 percent to USD 7.80 billion, making it the main growth engine.

The company raised its full-year free-cash-flow outlook to an increase of more than USD 1.00 billion year over year. It kept its constant-currency revenue-growth expectation at 4.00 percent to 5.00 percent for 2026. First-nine-month free cash flow reached USD 7.80 billion, up USD 0.60 billion from the prior-year period.

What does the target change mean?

BMO's higher target came with a cautionary signal: its Market Perform rating stayed unchanged because the firm questioned the durability of IBM's software growth, according to TokenPost. IBM's software segment grew 8.00 percent in the third quarter, while consulting revenue was flat and infrastructure revenue increased 4.00 percent.

Three recent IBM milestones

On October 21, 2026, IBM reported USD 17.10 billion in third-quarter revenue. On October 21, 2026, it raised its full-year free-cash-flow outlook by more than USD 1.00 billion year over year. On October 22, 2026, BMO Capital raised its target from USD 230.00 to USD 265.00 while retaining Market Perform.

Next IBM dates

IBM's release sets November 10, 2026 as the record date for its USD 1.69 quarterly dividend and December 10, 2026 as the payment date, according to IBM.

IBM stock holds near the Xetra close

IBM is listed on the NYSE under ticker IBM, with the company identified by ISIN US4592001014 in a master-data profile from Roic AI. At Lang & Schwarz, the stock was trading at EUR 222.70 on October 23, 2026, at 11:05 a.m. CEST, 0.04 percent above the Xetra close of October 22, 2026 at EUR 222.60. The modest spread leaves the earnings figures and the software-growth debate as the clearer signals for investors. The further course of trading is shown by the continuously updated real-time quote of IBM stock.