1507 ET - IBM's full-year guidance was better than expected even after the company's troubling profit warning last week, JPMorgan analysts say in a note. Bright spots included Big Blue maintaining its FY26 free cash flow growth outlook of $1 billion and management's conviction that missed deals in 2Q were slipped deals rather than lost deals, the analysts say. But the numbers and conviction may not be enough--IBM needs to execute to build investor confidence in the outlook, the analysts say. "We remain overweight rated as we think the current stock price reflects a more dire outlook many likely assumed after the preannouncement, but expect investors will need to see evidence of better execution before underwriting a meaningful recovery." IBM is up 0.2%.(elias.schisgall@wsj.com)

(END) Dow Jones Newswires

July 23, 2026 15:07 ET (19:07 GMT)

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