IBM Upgraded to Buy Amid Strong Dividend Profile and Valuation Reset

IBM's stock received an upgrade to 'Buy' from analysts on September 28, 2026. This decision was influenced by a valuation reset and optimistic growth prospects, particularly driven by IBM's recurring software revenue.

The company's strong dividend profile is also a key factor in the upgrade. IBM offers a dividend yield of 2.97%, with a low payout ratio of 46% and modest dividend growth of 0.6% over three years.

Analysts highlighted IBM's reset in valuation multiples, which now appear more reasonable compared to historical levels. The company's strong recurring software revenue accounts for 80% of annual sales.

IBM's GF Score stands at a robust 78 out of 100, reflecting solid overall fundamentals with particular strength in valuation and profitability. The stock is currently trading 9.0% below its GF Value of $242.94.