IBM Share Price Soars on Strong Software Growth
IBM's share price has rebounded by 11.74% in the last month after hitting its mid-July low, and experts say this trend is expected to continue. The company's hybrid-cloud and enterprise-AI franchise, wrapped around a strong software and mainframe installed base, remains a solid investment opportunity.
One of the key drivers of IBM's rebound is the growth of its software business, which now accounts for 45% of total revenue. Red Hat, Data, Automation, and transaction-processing software running on IBM Z have all seen significant increases in sales, with Red Hat growing 11%, Data growing 19%, and Distributed Infrastructure posting a record 37% growth in Q2 2026.
IBM's generative-AI book of business is also a major plus, standing at $12.5 billion inception-to-date. The company's combination of IBM WatsonX with Red Hat OpenShift provides a single platform for AI and application lifecycles across hybrid, public, and on-premises environments, reducing operational costs and preventing vendor lock-in.
However, some concerns remain, including the ongoing securities fraud inquiry into pipeline disclosures. This has made it difficult to predict IBM's future performance with certainty. Nevertheless, analysts believe that the company's strengths outweigh its weaknesses, making it a solid investment opportunity at its current price of $234.32.