# Needham & Company cut its price target on IBM stock by 14.7% ahead of its Q1 fiscal 2026 results.

*business · news · 2026-04-12 · Barchart*

## Key points

- Needham & Company cut IBM's price target by 14.7% ahead of Q1 fiscal 2026 results.
- Analyst David Grossman now forecasts IBM's 2026 constant currency revenue growth at 4.5%-5%, below guidance.
- IBM's generative AI business exceeded $12.5 billion in 2025, with a quantum computer expected by 2029.
- Software now contributes 45% of IBM's total revenue, up from 25% in 2018.
- Despite lowered targets, IBM maintains a 'Moderate Buy' rating with a 35% average upside potential.

**Companies:** International Business Machines Corporation (IBM)
**Countries:** United States

[Read the full story on Barchart](https://www.barchart.com/story/news/1263302/why-needham-analysts-slashed-their-price-targets-on-ibm-stock-ahead-of-earnings)

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