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Apr 24, 2026 8:20 AM

IBM AI Success Faces Macro Headwinds: Analyst Cuts Price Target

Shares of IBM (NYSE:IBM) tanked in early trading on Thursday, after the company reported upbeat first-quarter results.

The company reported a beat on the top and bottom lines but maintained its full-year outlook due to macro headwinds.

The IBM Analyst: Wedbush analyst Dan Ives maintained an Outperform rating, while cutting the price target from $340 to $320.

The IBM Thesis: The company witnessed stronger demand for AI adoption within software services, Ives said in the note.

Check out other analyst stock ratings.

Total revenues came in at $15.92 billion, up 6% year-on-year in constant currency terms. That’s above Street expectations of $15.63 billion.

The company's "business flywheel continued to strengthen, with more clients turning to IBM to modernize core systems and scale AI across operations," Ives stated.

The company indicated that its ...