International Business Machines Corporation (NYSE:IBM) has been one of 2025’s quiet tech winners. While more volatile names dominate headlines, IBM stock has gained over 28% year-to-date, recently hitting an all-time high. As investors look ahead, the IBM stock forecast remains a hot topic — especially with the company doubling down on artificial intelligence and quantum computing.

But with shares now trading near record levels, many investors are asking: is IBM still a buy?

IBM’s Solid Q1 Results Beat Expectations

IBM’s Q1 2025 earnings confirmed its ongoing turnaround. The company posted adjusted earnings of $1.60 per share, beating Wall Street estimates of $1.42. Revenue reached $14.54 billion, slightly above expectations and flat compared to the same period in 2024.

The company’s adjusted EBITDA rose to $3.4 billion from $3 billion a year earlier, while operating margins held steady at 7.2%. These metrics highlight the strength of IBM’s core operations — particularly in hybrid cloud, consulting, and AI services.

IBM also reaffirmed full-year guidance for at least 5% revenue growth and $13.5 billion in free cash flow. For Q2, revenue is expected to reach $16.575 billion, beating analysts’ average forecast of $16.25 billion.

These solid numbers contribute to a positive IBM stock forecast, even as broader market sentiment remains uncertain.

AI Bookings and Cloud Expansion Support Growth

AI continues to play a key role in IBM’s future. The company’s bookings for generative AI projects have surpassed $6 billion, with more than $1 billion in new deals added in Q1 alone. This momentum signals growing enterprise demand for AI-powered solutions in sectors like finance, healthcare, and logistics — areas where IBM has deep client relationships.

The expansion of IBM’s hybrid cloud offerings, built around Red Hat OpenShift, is also paying off. By focusing on enterprise needs and integrating AI across its software suite, IBM differentiates itself from consumer-facing AI players like Alphabet (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT).

This strategy may lack the explosive growth of newer AI names, but it gives IBM a stable and expanding revenue base — a critical component in the IBM stock forecast for 2025 and beyond.

IBM Makes Bold Bet on Quantum Computing

Perhaps the most exciting recent announcement from IBM is its next-generation quantum initiative. IBM revealed plans to build the world’s first large-scale, fault-tolerant quantum computer, Quantum Starling, by 2029. This machine will be capable of executing 100 million quantum operations using 200 logical qubits — more than 20,000 times the computing power of current quantum systems.

Quantum Starling will be housed at IBM’s Quantum Data Center in Poughkeepsie, New York, and will be followed by Quantum Blue Jay, which aims to reach 1 billion quantum operations using 2,000 logical qubits.

These advancements could give IBM a leadership position in quantum computing, a potential multi-trillion-dollar market. The company’s deep investment in this field positions it well as the technology moves closer to commercial reality, adding another pillar to the IBM stock forecast narrative.

Analyst Opinions: Mixed but Trending Positive

Despite IBM’s strong performance, analysts remain cautious. The stock holds a “Moderate Buy” consensus rating, based on 20 analysts: seven “Strong Buy,” one “Moderate Buy,” 10 “Hold,” and two “Strong Sell.” The average price target of $250.74 suggests limited near-term upside — about 11% downside from recent highs.

However, price targets often lag momentum, and IBM’s earnings and tech innovations may soon force analysts to revise those estimates upward.

Conclusion: A Promising IBM Stock Forecast for 2025

IBM (NYSE:IBM) has quietly become one of the most stable performers in tech, thanks to its success in hybrid cloud, enterprise AI, and now quantum computing. With strong fundamentals, a growing AI client base, and bold long-term bets, the IBM stock forecast looks increasingly favorable.

While some analysts remain hesitant, long-term investors may see any pullbacks as an opportunity. As IBM pushes boundaries in both classical and quantum computing, it continues to redefine its place in the next era of enterprise technology.

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