Story perspectives

Northwestern Mutual Cuts IBM Stake Amid AI Push

5/23/2026

Summary

Story summary

Northwestern Mutual Wealth Management trimmed its IBM position in May 2026.
IBM offers a low-single-digit dividend yield while emphasizing AI and hybrid-cloud growth.
Analysts maintained a Moderate Buy consensus with an average price target of about $294 as of 05/22/2026.
Revenue is driven by software subscriptions, consulting, high-end infrastructure sales, and Red Hat hybrid-cloud solutions for U.S. financial firms, healthcare providers, and manufacturers.

History

Historical Context

In the 1990s IBM shed its personal-computer business and shifted to services and software. The move followed a decade of divesting hardware units such as the PC spin-off in 1992 and helped lift FY1999 revenue to $97.7 billion. Today investors like Northwestern Mutual are trimming IBM stakes, betting on the hybrid-cloud and AI-driven subscription model.

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Story summary

Northwestern Mutual Wealth Management trimmed its IBM position in May 2026.
IBM offers a low-single-digit dividend yield while emphasizing AI and hybrid-cloud growth.
Analysts maintained a Moderate Buy consensus with an average price target of about $294 as of 05/22/2026.
Revenue is driven by software subscriptions, consulting, high-end infrastructure sales, and Red Hat hybrid-cloud solutions for U.S. financial firms, healthcare providers, and manufacturers.

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