IBM’s third-quarter rebound: deferred orders come through, but 2027 growth still needs acquisition support
IBM’s third-quarter revenue and earnings slightly exceeded expectations, but part of the software growth came from deferred orders closing, while gross margins fell across its major businesses. Morgan Stanley believes cost cuts can support profit and cash flow, but acquisitions will still need to contribute for IBM to achieve 5% constant-currency revenue growth in 2027.
Morgan Stanley ·