IBM Bets on AI and Consulting to Spur Growth, Uphold Dividends
-
IBM is pivoting to focus on artificial intelligence (AI), positioning itself to capitalize on a rapidly expanding $1.2 trillion market opportunity by 2032.
-
Its consulting business complements its AI offerings, strengthening client relationships and future revenue growth.
-
With strong free cash flow, low leverage, and a solid credit rating, IBM can maintain its 3.5% dividend yield.
-
IBM faces valuation challenges with historically muted multiples and moderate projected EPS growth of 5-6% through 2026.
-
The company's success depends heavily on maintaining leadership in AI and consulting services to drive growth.