International Business Machines Corporation IBM has extended its collaboration with Juniper Networks, Inc. JNPR to drive productivity in core enterprise workflows. Per the renewed agreement, IBM aims to integrate its watsonx platform with Juniper’s Mist AI (artificial intelligence) to address the complexities of managing IT networks and help improve user experiences and lower operational costs. 

In particular, the companies will work in unison on two internal IBM projects, namely IBM Guest Services and IBM AskNetwork. IBM Guest Services intends to help automate IT network support services and minimize manual intervention to resolve guest Wi-Fi network issues. IBM AskNetwork, on the other hand, will help resolve network infrastructure problems and diagnose end-user issues by simplifying complex technical data into consumable, actionable insights.

In addition to providing personalized support to each user in real-time, the extended tie-up will free up IT resources and empower end users with instant, accurate resolutions. This is likely to improve efficiency and help unlock new opportunities to stay ahead in the competitive business landscape.

Watsonx Platform: IBM’s Key Growth Driver

IBM’s Watsonx platform is likely to be the core technology platform for its AI capabilities. Watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive. This enterprise-ready AI and data platform comprises three products to help organizations accelerate and scale AI — the watsonx.ai studio for new foundation models, generative AI and machine learning, the watsonx.data fit-for-purpose data store built on an open lake house architecture and the watsonx.governance toolkit to help enable AI workflows to be built with responsibility and transparency.

Solid Hybrid Cloud Demand: IBM’s Strength

IBM’s growth is expected to be driven primarily by analytics, cloud computing and security in the long haul. With a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which has led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management. This, in turn, has translated into a healthy demand for IBM hybrid cloud solutions, translating into an uptrend in revenues in recent years.

The buyout of HashiCorp has further augmented IBM’s capabilities to assist enterprises in managing complex cloud environments. HashiCorp’s tool sets complement IBM RedHat’s portfolio, bringing additional functionalities for cloud infrastructure management. The integration of HashiCorp’s cloud software capabilities has bolstered IBM’s hybrid multi-cloud approach. The acquisitions of StreamSets and webMethods have also improved IBM’s AI platform and automation capabilities, bringing together key competencies in integration, API management and data ingestion. Complementing IBM DataStage and Databand platform with a hybrid and multi-cloud approach, the buyouts have enabled IBM to develop comprehensive application and data integration platforms in the industry.

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Estimate Revision Trend of IBM

IBM is currently witnessing an uptrend in estimate revisions. Earnings estimates for 2025 have jumped 1.6% to $10.78 over the past 60 days, while the same for 2026 has increased 3.3% to $11.61. The positive estimate revision portrays bullish sentiments about the stock’s growth potential.

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Price Performance

Buoyed by healthy demand trends, IBM has surged 27.9% over the past year against the industry’s decline of 19.2%, outperforming peers like Microsoft Corporation MSFT and Amazon.com, Inc. AMZN.

One-Year IBM Stock Price Performance

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End Note

With solid fundamentals and healthy revenue-generating potential driven by robust demand trends, IBM appears to be a solid investment proposition. Further, a strong emphasis on hybrid cloud, diligent execution of operational plans and AI focus are driving more value for customers. For 2025, the company expects revenues to grow at least 5% on a constant currency basis driven by a strong portfolio mix, operating leverage and yield from productivity initiatives. 

The stock delivered a trailing four-quarter average earnings surprise of 6.1% on average. IBM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Riding on a robust earnings surprise history and favorable Zacks Rank, it appears primed for further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock.

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This article originally published on Zacks Investment Research (zacks.com).

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