International Business Machines (IBM) is positioned to deliver stronger growth in 2026 supported by an increase in software pricing, larger contract sizes and an expanding portfolio, Oppenheimer said in a Thursday note.

The firm said IBM's software portfolio remains sticky, allowing the company to push through pricing increases with "close to zero customer attrition."

Oppenheimer expects total revenue growth of about 6% in 2026, with software revenue up nearly 9%, exceeding bearish expectations of 2% to 3% overall growth.

IBM is successfully implementing price increases on enterprise license agreement renewals, while Red Hat is seeing 15% to 20% higher contract values and HashiCorp is contributing incremental growth through cross-selling, the firm said.

In consulting, Oppenheimer said demand trends remain stable, with growth increasingly tied to hybrid cloud and RedHat rather than discretionary projects.

Oppenheimer reiterated its outperform rating on IBM and maintained its price target of $360.

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