International Business Machines Corporation (NYSE:IBM) is included among the 12 Best DOW Stocks to Buy in 2026. RBC Sees AI Tailwinds Building for IBM as Enterprise Spending Stabilizes On January 5, RBC Capital Markets raised the price target on International Business Machines Corporation (NYSE:IBM) to $350 from $300 and kept an Outperform rating. The firm said that 2026 could be the year when AI tailwinds become more visible for companies that are ready for enterprise adoption. Those who are not may co ...

RALEIGH, N.C.--(BUSINESS WIRE)--Red Hat, the world's leading provider of open source solutions, today announced a landmark expansion of its collaboration with NVIDIA to align enterprise open source technologies to the rapidity of enterprise AI evolution and rack-scale AI advances. As the industry moves beyond individual servers toward unified, high-density systems, Red Hat aims to deliver the starting point for this transformation with Red Hat Enterprise Linux for NVIDIA, a specialized edition of the world' ...

Core Insights - IBM is experiencing significant growth in its Software segment, with Q3 revenues reaching $7.21 billion, a 10.6% increase from $6.52 billion year-over-year. Net income rose to $2.37 billion from $1.97 billion, with margins improving to 32.9% from 30% [1][9]. Software Segment Performance - The growth in the Software segment is primarily driven by Automation, which saw a 22% increase during the quarter. This growth is attributed to the rising demand for digital transformation and AI integration across various sectors [2]. - IBM's Automation portfolio provides comprehensive solutions aimed at optimizing operations and enhancing cost efficiency [2]. Hybrid Cloud Growth - Hybrid Cloud continues to be a key growth driver for IBM, reporting a 12% year-over-year revenue increase in Q3. All major subscription offerings gained market share, reflecting the effectiveness of IBM's hybrid approach [3]. - The company anticipates generating $7.67 billion in revenues from the Hybrid Cloud segment, indicating an 18.2% year-over-year growth [4]. Strategic Acquisitions - IBM is set to acquire Confluent, a leading data infrastructure company specializing in real-time data streaming. This acquisition aims to enhance the integration of applications, analytics, data systems, and AI agents, thereby improving resilience in hybrid cloud environments [5]. Competitive Landscape - IBM faces competition from Microsoft and Oracle. Oracle reported cloud revenues of $7.97 billion, a 34% increase year-over-year, while Microsoft's Productivity & Business Processes segment generated $33.02 billion, up 17% year-over-year [6][7]. Valuation and Earnings Estimates - IBM shares have increased by 35.6% over the past year, compared to the industry's growth of 73% [8]. - The company trades at a forward price-to-earnings ratio of 25.67, which is higher than the industry average [11]. - Earnings estimates for 2025 have risen by 2.43% to $11.39, and for 2026, they have increased by 2.34% to $12.23 [12].