IBM stock jumps after Barclays' bullish forecast rebuts SaaSpocalypse fears

IBM stock surged on Monday after Barclays initiated coverage with a bullish outlook for the storied tech giant. The shares jumped 10%, extending gains from last week and helping erase earlier 2026 losses, leaving the stock about 10% higher year to date. Barclays' bull case centers on IBM's software franchise rather than quantum computing.

"Our core thesis is that IBM has created a stable growth engine around its very defensible software portfolio. This creates solid future growth but also better margins," the analysts wrote, adding, "Quantum represents a very interesting option value with IBM being an early leader." The note began coverage with an overweight rating and a $350 price target, roughly an 11% upside from where the stock opened Monday's session.

The bank pushed back on the "SaaSpocalypse" narrative, arguing IBM's infrastructure software to large, often heavily regulated customers creates a "very sticky set-up" unlikely to see negative AI implications.

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