10 Mid-Cap IT Stocks Outperforming The Market In 2025

6. International Business Machines Corporation (NYSE:IBM) 

International Business Machines Corporation is an integrated services and solutions provider. It operates through four segments; infrastructure, software, financing, and consulting. The company has established strategic partnerships with various organizations including Microsoft, Samsung Electronics & SAP, Amazon Web Series, and others. The stock is experiencing an upward momentum with a 14% gain this year due to the strong growth reported in Q4 earnings.

The tech giant reported total AI products and services bookings exceeding $5 billion which grew substantially from the $3 billion reported in the last quarter. According to the management, 20% of the total AI bookings were from the company’s software business. Another key point is a 13.7% increase in cash flows that can be utilized for share buybacks and marketing to stay ahead of the competition.

Based on the last quarter’s performance, management is optimistic about the future outlook of the company. It raised its growth targets for 2025 and now expects revenue growth of about 5% while cashflows are predicted to be $13.5 billion. This growth is further supported by analysts’ optimism as most of them maintained their rating and raised the target price assigned to the stock. Stifel raised the target price from $271 to $290. RBC Capital Markets also raised its price target from $250 to $276 while Morgan Stanley kept its Equal Weight rating but increased the price target of the share from $217 to $228. Moreover, Evercore also maintained its Outperform rating but raised the target price from $240 to $275.

The CEO of the company, James Kavanaugh had this to say about future guidance:

Our 2025 guidance reflects the next evolution of our model, There is $13.5B in free cash flow and 5% revenue growth. 2025 is just the beginning of our model.