IBM Downgraded on Disappointing Pre-announcement

Dow Jones
07/16

1252 ET - Oppenheimer downgrades IBM to perform and removes its $350 price target following the company's announcement that its software and infrastructure segments missed estimates in 2Q which sent the shares down 25% yesterday. Oppenheimer's analysts were previously bullish on IBM, anticipating a sticky software business and "no surprises" in the second-quarter print. But Tuesday's disappointing preliminary results mean that "the bull thesis will take longer to materialize," analysts write. "We believe it will be difficult for IBM to get 'double-digit' CC growth in software for CY26/27 without additional large acquisitions or a material catch-up in large deals that slipped during 2Q." (elias.schisgall@wsj.com)

 

(END) Dow Jones Newswires

July 15, 2026 12:52 ET (16:52 GMT)

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