IBM's Software Growth Sped Up and Its Stock Barely Moved. I'd Start Buying.

IBM's software segment accelerated to 9% year-over-year revenue growth in Q3 2026, up from 5% in Q2, meeting the analyst's buying criteria. Despite this improvement, the stock barely moved, closing up less than 1%. The company maintained its full-year revenue guidance of 4-5% growth but raised free cash flow expectations. The analyst recommends starting to buy IBM stock at current levels, though recurring revenue growth remains below the desired 10% threshold.