BMO Trims IBM Target on Soft Growth, Wedbush Sees AI Tailwinds

BMO Capital Markets and Wedbush Securities both lowered their price targets for IBM, citing softer Q1 software organic growth and dilution from Confluent, respectively. Despite this, IBM beat revenue and earnings expectations in Q1 and maintained its FY26 outlook, with Wedbush noting strong AI demand in software services. IBM provides hybrid cloud, AI, and consulting services, with its business organized across Software, Consulting, Infrastructure, and Financing segments.

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