IBM is trying to rebound after results disappointed initially. What analysts and investors are saying

Analysts remain largely split on IBM 's future after the tech stalwart posted key metrics that flashed warning signs heading into 2026. While IBM reported a third-quarter earnings and revenue beat , analysts pointed to metrics below the surface headline beat that might indicate a worrisome near-term setup for the stock: namely, softness in IBM's Red Hat and transaction processing performance. "Driving the miss was RHT and TP growth decelerating by 2pts and 1pt vs. 2Q. respectively," wrote Morgan Stanley analyst Erik Woodring. "Good results on the surface offset by softer than expected Red Hat and TP performance as we're reminded of the importance of M & A for maintaining meaningful growth next year," added JPMorgan analyst Brian Essex. Shares of IBM were last trading 1% lower on Thursday,