FINWIRES · TerminalLIVE
FINWIRES

IBM Sees 'Solid' Start to 2026 With Q1 Topline Outperformance Coming From Infrastructure, RBC Says

By

IBM (IBM) saw a "solid" start to the year overall with topline outperformance in Q1 coming from its infrastructure segment, while consulting was in-line with consensus, RBC Capital Markets said in a Wednesday research note.

IBM's software segment will be the main driver of 2026 revenue, aided by the company's Confluent acquisition closing about 2 months early, which RBC estimated equates to about $200 million.

The company remains on track for an additional $1 billion in productivity savings in 2026, the analysts said, adding that IBM's AI-based software development system "Bob" and advancements in quantum development are key areas to watch throughout the year.

IBM's expectation to add about $1 billion in free cash flow in 2026 could prove to be conservative given the company's strong start and ongoing cost saving initiatives, RBC added.

RBC maintained its outperform rating with a $330 price target.

Price: $229.44, Change: $-22.42, Percent Change: -8.90%

Related Articles

Wire

New Hope Completes AU$300 Million Convertible Notes Offering

New Hope (ASX:NHC) completed a AU$300 million issuance of 2.625% senior unsecured convertible notes due 2032 and the concurrent repurchase of AU$293.3 million of its existing 2029 convertible notes, according to a Thursday filing with the Australian bourse.The new notes are expected to be listed on the Singapore Exchange Securities Trading on or around Thursday, per the filing.The repurchased 2029 notes, which account for around 98% of the outstanding notes, will be cancelled under their terms, the filing said. The company also plans to redeem the remaining AU$6.7 million of notes at par plus accrued interest prior to maturity.

ASX:NHC
Wire

Telix Pharmaceuticals Settles Issue of $600 Million Convertible Notes

Telix Pharmaceuticals (ASX:TLX) said it settled the issue of $600 million in 1.50% convertible notes due 2031, according to a Thursday Australian bourse filing.The convertible notes are expected to be listed on the Official List of the Singapore Exchange Securities Trading on Thursday.In the same filing, the company said that the repurchase of around AU$637 million in principal of the AU$650 million worth of 2.375% convertible bonds due 2029 is "substantially complete."After the repurchase, given that less than 15% in aggregate principal amount of the existing bonds will remain outstanding, Telix said it plans to exercise its right to repurchase and cancel all of the remaining existing bonds at their principal amount.

ASX:TLX
Wire

Century Communities Q1 Adjusted Earnings, Revenue Fall

Century Communities (CCS) reported Q1 adjusted earnings late Wednesday of $0.88 per diluted share, down from $1.39 a year earlier.Three analysts polled by FactSet expected $0.59.Revenue for the three months ended March 31 fell to $789.7 million from $903.2 million a year earlier.Four analysts surveyed by FactSet expected $807.7 million.

$CCS