Tech giant IBM (IBM) is expected to post strong results when it reports Q1 2026 earnings after the market closes on April 22, according to analysts. More specifically, RBC Capital Markets (RY) believes that the company could beat expectations, largely due to continued momentum in its AI strategy. Analyst Matthew Swanson noted that IBM finished last year with a strong fourth quarter, and he expects that trend to carry into this quarter. In particular, RBC sees growth being supported by strength in software and infrastructure, especially in areas like automation and transaction processing.
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New trading tool for IBM bullsHowever, not all parts of the business are moving at the same pace. For instance, Red Hat, which is part of IBM’s hybrid cloud segment, saw growth slow down to 8% from 12% in the previous quarter. Even so, IBM still expects Red Hat to return to double-digit growth in 2026. In addition, RBC expects updates on issues such as Anthropic’s COBOL tools, the Confluent deal, and IBM’s work in quantum computing during the earnings call. With that in mind, RBC kept its Buy rating but lowered its price target to $330 from $361.
In a similar move, Wedbush, led by five-star analyst Dan Ives, also maintained its Buy rating with a $330 target. Indeed, Wedbush highlighted that recent developments, such as new AI and cybersecurity tools, are strengthening IBM’s overall position. These include government-approved AI solutions and a new Autonomous Security service designed to respond to threats quickly.
Is IBM a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on IBM stock based on 11 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $310.88 per share implies 23% upside potential.
