12:21 PM EDT, 04/23/2026 (MT Newswires) -- 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.

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