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Can IBM Profit From S&P Global Tie-Up For Supply Chain Management?
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Key Takeaways
IBM partnered with S&P Global to embed its watsonx AI into supply chain and vendor selection platforms.
The collaboration leverages S&P Global's data and IBM's AI to boost visibility and accelerate decisions.
Upbeat estimate revisions and AI-driven growth trends signal optimism around IBM's profitability.
International Business Machines Corporation (IBM - Free Report) has inked a partnership with S&P Global Inc. (SPGI - Free Report) to equip business enterprises with AI-powered tools for effective supply chain management. Per the collaboration, IBM's watsonx Orchestrate agentic framework will be embedded into S&P Global's supply chain and vendor selection tools for key insight and improved visibility. Leveraging S&P Global's proprietary data, research and analytics along with IBM’s AI capabilities, the partnership aims to expedite the decision-making process across supply chain management.
IBM’s watsonx platform is likely to be the core technology platform for its AI capabilities. watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive. This enterprise-ready AI and data platform comprises three products to help organizations accelerate and scale AI — the watsonx.ai studio for new foundation models, generative AI and machine learning, the watsonx.data fit-for-purpose data store built on an open lake house architecture and the watsonx.governance toolkit to help enable AI workflows to be built with responsibility and transparency.
IBM Rides on AI Traction
IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company’s growth is expected to be aided by analytics, cloud computing and security in the long term. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely boost profitability.
IBM works closely with a diverse AI partner ecosystem through an open and collaborative approach to plan, build, implement and operate generative AI solutions. This open ecosystem approach is likely to help clients define the right models and architecture to deliver their desired outcomes. IBM has collaborated with SAP SE (SAP) to tap the generative AI technology within the retail industry. The collaboration is likely to facilitate higher productivity and help accelerate business transformation in consumer-packaged goods and retail firms. The company also partnered with Salesforce, Inc. (CRM) to drive increased productivity and help accelerate business transformation with generative AI. Such collaborations have helped IBM to witness an uptrend in revenues over the past few quarters.
Image Source: Zacks Investment Research
Price Performance
Buoyed by strong demand for hybrid cloud and AI, IBM has surged 25.5% over the past year compared with the industry’s growth of 37.8%, outperforming peers like Amazon.com, Inc. (AMZN - Free Report) but falling marginally short of Microsoft Corporation (MSFT - Free Report) . While Microsoft has gained 25.6%, Amazon jumped 19.8% over this period.
One-Year IBM Stock Price Performance
Image Source: Zacks Investment Research
Estimate Revision Trend of IBM
IBM is currently witnessing an uptrend in estimate revisions. Earnings estimates for 2025 have moved up 5.3% to $11.12 over the past year, while the same for 2026 has increased 6.1% to $11.92. The positive estimate revision portrays bullish sentiments about the stock’s growth potential.
Image Source: Zacks Investment Research
End Note
With solid fundamentals and healthy revenue-generating potential driven by robust demand trends, IBM appears to be a solid investment proposition. Further, a strong emphasis on hybrid cloud, diligent execution of operational plans and AI focus are driving more value for customers. Due to a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which, in turn, have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management.
Riding on a robust earnings surprise history and favorable Zacks Rank, it appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock.
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Can IBM Profit From S&P Global Tie-Up For Supply Chain Management?
Key Takeaways
International Business Machines Corporation (IBM - Free Report) has inked a partnership with S&P Global Inc. (SPGI - Free Report) to equip business enterprises with AI-powered tools for effective supply chain management. Per the collaboration, IBM's watsonx Orchestrate agentic framework will be embedded into S&P Global's supply chain and vendor selection tools for key insight and improved visibility. Leveraging S&P Global's proprietary data, research and analytics along with IBM’s AI capabilities, the partnership aims to expedite the decision-making process across supply chain management.
IBM’s watsonx platform is likely to be the core technology platform for its AI capabilities. watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive. This enterprise-ready AI and data platform comprises three products to help organizations accelerate and scale AI — the watsonx.ai studio for new foundation models, generative AI and machine learning, the watsonx.data fit-for-purpose data store built on an open lake house architecture and the watsonx.governance toolkit to help enable AI workflows to be built with responsibility and transparency.
IBM Rides on AI Traction
IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company’s growth is expected to be aided by analytics, cloud computing and security in the long term. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely boost profitability.
IBM works closely with a diverse AI partner ecosystem through an open and collaborative approach to plan, build, implement and operate generative AI solutions. This open ecosystem approach is likely to help clients define the right models and architecture to deliver their desired outcomes. IBM has collaborated with SAP SE (SAP) to tap the generative AI technology within the retail industry. The collaboration is likely to facilitate higher productivity and help accelerate business transformation in consumer-packaged goods and retail firms. The company also partnered with Salesforce, Inc. (CRM) to drive increased productivity and help accelerate business transformation with generative AI. Such collaborations have helped IBM to witness an uptrend in revenues over the past few quarters.
Image Source: Zacks Investment Research
Price Performance
Buoyed by strong demand for hybrid cloud and AI, IBM has surged 25.5% over the past year compared with the industry’s growth of 37.8%, outperforming peers like Amazon.com, Inc. (AMZN - Free Report) but falling marginally short of Microsoft Corporation (MSFT - Free Report) . While Microsoft has gained 25.6%, Amazon jumped 19.8% over this period.
One-Year IBM Stock Price Performance
Image Source: Zacks Investment Research
Estimate Revision Trend of IBM
IBM is currently witnessing an uptrend in estimate revisions. Earnings estimates for 2025 have moved up 5.3% to $11.12 over the past year, while the same for 2026 has increased 6.1% to $11.92. The positive estimate revision portrays bullish sentiments about the stock’s growth potential.
Image Source: Zacks Investment Research
End Note
With solid fundamentals and healthy revenue-generating potential driven by robust demand trends, IBM appears to be a solid investment proposition. Further, a strong emphasis on hybrid cloud, diligent execution of operational plans and AI focus are driving more value for customers. Due to a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which, in turn, have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management.
The company delivered a trailing four-quarter average earnings surprise of 6.3% on average. IBM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Riding on a robust earnings surprise history and favorable Zacks Rank, it appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock.