IBM stock has gained 2.35% year to date, outperforming SPY, which is up 1.74%. The company is set to report Q4 2025 earnings on January 28, following a strong performance in 2025. Bank of America analysts expect IBM to face challenges in 2026, including workforce restructuring impacting profit margins.

Analysts anticipate a workforce rebalancing expense of $400 million in Q4, affecting the company’s PTI margin expansion. They estimate IBM’s free cash flow to be $14.0 billion for 2025, with a projected $15 billion for 2026. Revenue and non-GAAP EPS estimates for 2025 have been adjusted, with a buy rating and increased target price for IBM stock.

Datavault AI plans to enhance AI performance at the edge in New York and Philadelphia through collaboration with IBM’s SanQtum AI platform. This collaboration aims to improve enterprise-grade AI capabilities and data monetization, with a focus on speed, resilience, and data security within a zero-trust network.

Available Infrastructure CEO Daniel Gregory believes the deployment of SanQtum AI technology will set a new standard for enterprise-grade AI in the Northeast. This collaboration aims to eliminate dependence on centralized cloud pipelines, reduce data monetization lag, prevent tampering, and facilitate tradable digital property for enterprises.

The story was originally published by TheStreet on January 15, 2026, highlighting Bank of America’s updated outlook on IBM stock before earnings. Analysts anticipate challenges and growth opportunities for IBM in 2026, emphasizing the importance of workforce restructuring and profit margin improvement.

Read more at Yahoo Finance: Bank of America resets IBM price target before earnings