Why International Business Machines (IBM) Shares Rose Despite Being Down 26% in 2026

TLDR

• International Business Machines shares jumped 2.6% Thursday, marking the largest single-session gain since September.
• The rally stemmed from Accenture’s quarterly results rather than IBM-specific developments.
• Accenture delivered consulting revenue of $9.28 billion, surpassing Wall Street’s $8.86 billion projection, sending its stock up 16%.
• IBM shares have fallen 26% year-to-date after a disappointing July earnings warning.
• The company’s third-quarter results due later this month will test whether its AI and consulting businesses are gaining traction.

IBM stock gained 2.6% Thursday in its strongest daily performance since September.

International Business Machines Corporation, IBM

The rally wasn’t triggered by company-specific announcements. Instead, investors responded to positive quarterly results from a rival firm.

Accenture reported consulting sales of $9.28 billion for its most recent quarter, exceeding the analyst consensus of $8.86 billion.

Shares of Accenture soared 16% following the announcement. The consulting giant also increased its annual revenue guidance.

This development carries weight for IBM since consulting represents its second-biggest revenue stream. While software generates the most sales, the consulting division plays a crucial role in overall performance.

Market participants interpreted Accenture’s robust results as evidence that demand for consulting services remains resilient. Concerns had emerged that artificial intelligence adoption might erode traditional consulting revenue.

IBM’s Challenging Year

IBM shares have declined 26% in 2026. The selloff began after an unusual mid-quarter earnings warning in July.

CEO Arvind Krishna explained at the time that clients redirected spending toward servers, storage systems, and memory products during late June. These customers were attempting to avoid anticipated price increases on infrastructure components facing supply constraints.

This demand pattern negatively impacted IBM’s financial results. The technology giant reported second-quarter revenue of $17.2 billion, missing analyst projections, and subsequently lowered its full-year outlook.

Infrastructure segment revenue fell 7% during that period. Consulting sales remained unchanged year-over-year.

Krishna acknowledged internal missteps as well. He noted the company failed to finalize several significant contracts before the quarter closed.

Fellow IT services provider Cognizant Technology also delivered encouraging news in July. The firm increased its annual profit guidance based on strong performance in financial services clients. Cognizant shares rose 6% Thursday amid the broader sector upswing.

IBM’s Path Forward

IBM unveiled a self-hosted edition of its Bob software development platform this week. The offering is designed for on-premises deployments, private cloud infrastructure, and air-gapped computing environments.

This product targets highly regulated industries with stringent data sovereignty and security requirements. The launch aligns with IBM’s strategic emphasis on hybrid cloud architecture and enterprise artificial intelligence solutions.

Analyst sentiment toward the stock remains generally favorable. The consensus recommendation stands at “Moderate Buy” with an average target price of $253.52.

However, opinions diverge among market watchers. Some investors favor IBM based on valuation metrics, highlighting its earnings multiple and approximately 3% dividend yield, while questions about growth prospects persist.

IBM also confronts a securities law probe related to its July announcement. Law firm Hagens Berman disclosed it is examining potential issues surrounding the disclosure, which preceded a single-day market capitalization decline exceeding $68 billion.

The investigation represents an inquiry rather than confirmation of violations, but it introduces additional uncertainty for shareholders.

IBM will release third-quarter financial results later this month. Analysts anticipate earnings growth in the high single digits for the reporting period.

Those results will reveal whether Thursday’s sector-driven momentum translates into tangible improvements in IBM’s own business performance.