IBM resists tech slump after JPMorgan upgrade, shares extend rally on NYSE

IBM receives a rating upgrade from JPMorgan and benefits from growing optimism around its software and AI strategy, while its shares outperform the broader tech sector on the NYSE.

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-24, 08:11.

International Business Machines Corporation (US4592001014) has drawn renewed analyst attention after JPMorgan lifted its rating, while the shares outperformed a weak technology sector on the NYSE on Tuesday. JPMorgan now sees stronger momentum in IBM's software and AI-driven businesses, according to recent analyst commentary.

What JPMorgan changed

On Tuesday, JPMorgan upgraded IBM shares from Neutral to Overweight and raised its price target from 270 to 291 US dollars, citing improving growth prospects in the software division and rising AI adoption among enterprise clients. This shift is reported in a recent market update summarized by Yahoo Finance.

Analysts at JPMorgan argue that investors have been undervaluing the contribution from IBM's software portfolio, particularly automation, data and AI platforms, and hybrid cloud services, relative to the legacy infrastructure perception that has long weighed on the stock. They point to clearer visibility on medium-term revenue growth as AI workloads and modernization projects migrate onto IBM's platforms.

How IBM shares performed

IBM shares climbed around 5 percent on Tuesday, closing just below 265 US dollars, and ranking among the stronger names in the S&P 500 despite a broader tech sell-off, according to an analysis by Investopedia. The stock's move contrasted with declines in many large technology peers, underscoring how company-specific catalysts can decouple IBM from sector swings.

MarketBeat data show IBM shares at 264.66 US dollars at the regular close on 23 June 2026, representing a 4.93 percent gain on the day, before a slight pullback to 264.17 US dollars in extended trading. This price action leaves the stock still well below a recent 52-week high above 330 US dollars reached earlier in June, highlighting the volatility around quantum computing and AI-related headlines.

The business behind IBM's numbers

IBM generates a large share of its revenue from software and consulting, anchored by its hybrid cloud and AI offerings such as the IBM Red Hat OpenShift platform and the watsonx AI suite. In the first quarter of fiscal 2026, IBM reported 6 percent year-on-year total revenue growth to roughly 15.9 billion US dollars, with free cash flow of 2.2 billion US dollars, according to a recent earnings summary cited by International Business Times.

The same report notes that IBM delivered earnings per share of 1.91 US dollars versus consensus estimates of 1.81 US dollars, marking its strongest first-quarter free cash flow performance in a decade. This operational picture provides the backdrop for JPMorgan's more constructive view on the software transition and the durability of cash generation.

Where the IBM shares trade today

The IBM shares (US4592001014) most recently traded on the NYSE at 264.66 US dollars at the close on 2026-06-23, with after-hours indications around 264.17 US dollars as of 19:59 Eastern time on the same date.

Key data on the IBM shares

• Company: International Business Machines Corporation
• ISIN: US4592001014
• WKN: 851399
• Ticker: IBM
• Trading venue: NYSE
• Price (as of 2026-06-23, 19:59): 264.17 USD
• Market cap: around 240 billion USD (as of 2026-06-23, based on recent share price and share count)
• Sector / industry: Information Technology / IT Services & Software
• Index membership: S&P 500, Dow Jones Industrial Average
• Next earnings date: not officially scheduled

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or a solicitation of any kind. All data are based on publicly available sources. Accuracy and completeness cannot be guaranteed.