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Armonk, New York-based International Business Machines Corporation (IBM) operates as an IT solutions company, providing integrated solutions and services worldwide. Valued at $240.8 billion by market cap, IBM operates Consulting, Software, Infrastructure, and Financing segments.
Companies worth $200 billion or more are generally described as “mega-cap stocks”, and International Business Machines fits this criterion perfectly. IBM is a technology company that engages in addressing the hybrid cloud and artificial intelligence (AI) opportunity with a platform-centric approach.
IBM currently trades 3.8% below its all-time high of $269.28 recorded on May 20. IBM’s stock has gained 2.6% in the past three months, surpassing the S&P 500 Index’s ($SPX) marginal decrease.
In the longer term, IBM has surged 17.9% on a YTD basis, whereas SPX rose by 51 bps. Moreover, shares of the tech giant soared 52.7% over the past 52 weeks, notably outperforming the SPX's 11.4% rise over the same time frame.
The stock has traded mostly above its 200-day moving average over the past 52 weeks, and despite some fluctuations, IBM has remained above its 50-day average since early May, underscoring its bullish trend.
Despite reporting better-than-expected revenues and earnings, IBM stock prices fell 6.6% in the trading session following the release of its Q1 2025 results on Apr. 23. The company reported revenue of $14.5 billion, marking a marginal increase from the prior-year quarter, but surpassed the Street's expectations by a thin margin. Meanwhile, adjusted EPS came in at $1.60, down 4.8% year-over-year, but exceeded analysts’ estimates by 12.7%. The decline in share price was attributed to weaker-than-expected performance in the consulting segment, which dampened investor enthusiasm around IBM as a key artificial intelligence (AI) player. The consulting business is critical for driving growth across other segments of the company, too.
Looking ahead to Q2 2025, IBM expects revenue to be in the range of $16.40 billion to $16.75 billion, and the company also reaffirmed its full-year guidance of 5% sales growth.
Additionally, when compared, Accenture plc (ACN) performed weaker than IBM. ACN has climbed 6.4% over the past 52 weeks and dipped 9.9% on a YTD basis.
The stock has a consensus “Moderate Buy” rating among the 20 analysts covering it, and it is currently trading above the mean price target of $249.68.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
