IBM received a 'Buy' rating upgrade from a leading financial analyst, while Oracle is projected to rebound in the software market by 2026. The outlook reflects improving momentum in enterprise technology spending and strategic shifts within the sector.
- IBM upgraded to 'Buy' based on strong hybrid cloud and managed services performance
- Oracle projected to grow software revenue at 7.2% CAGR through 2026
- IBM’s Q4 2025 software revenue reached $12.3 billion, up 5.8% YoY
- Oracle’s cloud segment grew 14.3% sequentially in Q4 2025
- Adjusted EPS for IBM hit $4.72 in Q4 2025, exceeding estimates
- Forward-looking sentiment may drive capital allocation toward enterprise software
- Market momentum influenced by strategic shifts in cloud and AI integration
IBM stock has been upgraded to 'Buy' following a comprehensive review of its enterprise software and cloud infrastructure performance. The analyst cited IBM’s strengthened position in hybrid cloud solutions and consistent revenue growth in its managed services segment as key drivers behind the positive revaluation. The outlook for Oracle extends through 2026, with expectations of a market recovery fueled by renewed demand for database licensing, cloud platform adoption, and AI-enhanced enterprise applications. Projections indicate Oracle’s software revenue could grow at a compound annual rate of 7.2% through 2026, reversing recent stagnation in core business segments. IBM’s Q4 2025 results showed a 5.8% year-over-year increase in software revenue, reaching $12.3 billion, while adjusted earnings per share hit $4.72, surpassing consensus estimates. Oracle’s cloud segment posted a 14.3% sequential growth in the same quarter, signaling early signs of turnaround. The revised ratings are likely to influence institutional investment flows, particularly in the software and IT services sectors. Investors in IBM (IBM) and Oracle (ORCL) may see renewed interest, with potential upward pressure on valuations given the forward-looking confidence in both companies' strategic pivots.