IBM Strengthens AI Platform With Confluent Buyout; Analyst Hikes PT to $325

The standing affirmation follows IBM’s announcement that it has acquired Confluent for $11 bn, expanding its AI level and aligning with its hybrid unreality strategy.

“IBM announced the acquisition of Confluent for $11bn (all cash), oregon ~7x CY27 EV/revenue, in-line with bundle comps with a akin maturation illustration (5–9x) and a 34% premium to Friday’s adjacent (12/05/25). Expected adjacent mid-2026, coincidentally the day of the z17 mainframe motorboat (similar gross profile).”

The steadfast noted however CFLT runs the Apache Kafka unfastened root information streaming platform, serving arsenic the modular for real-time information proscription connection. While the institution has penetrated 40% of Fortune 500 companies, little than 5% of its 6,500 customers make implicit $1 cardinal successful yearly recurring revenue.

Stifel believes that the strategical underpinnings of the acquisition are solid, and that real-time information streaming is becoming progressively important for supporting AI usage cases.

“IBM historically gets optimal leverage from targets that person challenges penetrating ample enterprises and important imaginable outgo synergies. We estimation the acquisition is modestly dilutive to 2026 FCF (~1%) and neutral/accretive thereafter. We estimation humble EPS dilution (less than 3%) successful 2026/2027 owed to SBC; however, our investigation excludes immoderate imaginable gross synergies.”

International Business Machines Corporation (NYSE:IBM) is simply a multinational exertion institution and a pioneer successful artificial intelligence, offering AI consulting services and a suite of AI bundle products.

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