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IBM shares down 10% since May but remain a buy with strong cash flow and 23% upside potential.

Company Fundamentals
26 Sep 2026
Seeking Alpha
View Source
Neutral
IBM shares down 10% since May but remain a buy with strong cash flow and 23% upside potential.

IBM's stock has fallen 10% since May and lagged behind other tech peers and the S&P 500, partly due to a soft Q2 with nearly flat revenue and a lowered full-year 2026 outlook. Despite this, IBM maintains strong profitability and free cash flow, supporting a fair value estimate of $281, which implies a 23% upside. The stock also offers a 2.98% dividend yield and an attractive earnings-based valuation. Although technical trends appear bearish ahead of Q3 earnings, the lowered expectations and robust free cash flow make IBM a reasonable value for patient investors.

IBM shares are the subject of this update, with Pluang's Technology-sector snapshot as of Sep 26, 2026 21:11 WIB showing that out of 150 priced US tech stocks, 66 rose and 82 fell. Notable movers include BTDR at USD 11.51 with a 1-day change of -5.27%, DELL at USD 562.90 up 4.94%, and RBLX at USD 46.44 down 4.89%. The most notable figure is DELL's 4.94% gain on the day.

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