IBM Upped Its FCF Outlook - Could Be Worth +16% More at $300 Per Share

IBM Upped Its FCF Outlook - Could Be Worth +16% More at $300 Per Share

IBM produced strong free cash flow guidance in its latest Q2 earnings release, expecting over $13.5 billion in FCF this year. That's 8.8% higher than 2024 and implies IBM stock could be worth 13% more at $294 per share.

IBM raises 2025 free cash flow but stock dips

IBM just posted a solid second quarter with cash generation staying strong, the company has raised its 2025 free cash flow forecast to over $13.5 billion. The update reflects IBM’s confidence in the direction of modernizing its offerings and strengthening its cloud and enterprise tech portfolio. The company delivered a strong second quarter, with GAAP revenue climbing 8% year-over-year to $16.98 billion beating the Street’s forecast of $16.59 bi…