J.P. Morgan U.S. FTM 23 Jun 26 IBM and More

Research evidence excerpt

J.P. Morgan U.S. FTM 23 Jun 26 IBM and More

North America Equity Research

U.S. First to Market 23 June 2026

Top Stories

| International Business Machines (Brian Essex, CFA) (IBM, OW, PT $291.00)

A Guide to IBM Software: Upgrading to Overweight with Greater Confidence in Software

Acceleration Ahead

We are upgrading to Overweight with greater confidence in a 2H’26 CC software acceleration following a deeper look

at IBM’s software business. We’ve previously noted that software is the primary driver of IBM stock and this remains the case

as the higher value software business mix continues to grow. We could still see some RHEL softness on the back of weaker

server growth across the industry, but we think this will be more than offset by: 1) Red Hat/OpenShift migration tailwinds; 2)

OpenShift strength aided by growing AI-driven container adoption; 3) Automation reacceleration as HashiCorp taps increasing

C-suite sponsorship; 4) contribution from Data following the recent Confluent acquisition; and 5) Transaction Processing

acceleration related to the current mainframe cycle.

Mentions

AFL | Amazon.com (Doug Anmuth) (AMZN, OW, PT $330.00)

Prime Deep Dive Suggests 10x Value Potential for Members, 370M+ Subs Ending 2026, & Agentic

Advantages; Prime Day Shifts ~$7B-$8B Incremental Revenue Into 2Q26

AFL | Tyler Technologies (Alexei Gogolev) (TYL, OW, PT $525.00)

Recentering Investor Focus On Cloud Migration Runway with FCF Durability

Ionis Pharmaceuticals (Jessica Fye) (IONS, OW)

Spinal Muscular Atrophy KOL Call Takeaways

Cencora Inc (Lisa C. Gill) (COR, OW)

Cencora Week Day 2: U.S. Healthcare Solutions

CW | Scholar Rock (Tessa T Romero) (SRRK, OW)