IBM Shares Jump 5% After JPMorgan Upgrade on Software Growth

JPMorgan (JPM) upgraded shares of International Business Machines (IBM) on the New York Stock Exchange, citing increased confidence in the company's software growth in the second half of 2026. The upgrade sent IBM stock up 5% in trading.

Rating Change

Prior to the upgrade, JPMorgan's rating on IBM was neutral or underweight. After the upgrade, the rating was raised to "Overweight" with a new price target not yet disclosed.

Analyst Rationale

The JPMorgan analyst sees accelerating growth in IBM's software business, boosting confidence in strong results for H2 2026. This software focus could help improve profit margins and reduce reliance on traditional services.

Context

The upgrade comes after a period of mixed performance for IBM stock, as the company faced challenges in consulting and infrastructure. Other analysts see IBM's shift toward cloud and AI software as a long-term growth driver. No other analysts have issued similar comments yet.

What to Make of It

JPMorgan's upgrade reflects optimism in IBM's new business model, but investors need to monitor actual results in H2 2026 to confirm the momentum. Any slowdown in software performance could negatively impact the stock.