Goldman Sachs analyst James Schneider reiterated a Buy rating and $350.00 price target on IBM (NYSE: IBM).

The analyst comments "We expect a pullback in the stock following results, given slightly softer Software results set against strong margin performance and increased free cash flow guidance. We believe expectations were relatively elevated heading into the report given the recent outperformance in the stock. Software was weaker in the quarter (driven mostly by weakness in Transaction Processing and softer Red Hat growth) - although management believes that overall Software growth should accelerate in 2026. Despite these headwinds, we maintain our Buy rating on IBM, as we believe the company is on track to complete its pivot to long-term growth fueled by improving software growth and long-term market share gains in Consulting - and we think the stock can re-rate higher as software mix improves and margins expand."

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Shares of IBM closed at $287.51 yesterday.