International Business Machines Corporation IBM has partnered with Google Cloud to help businesses adopt artificial Intelligence (AI) faster and modernize their technology systems. The deal creates a new Google Cloud Practice within IBM Consulting, combining IBM’s industry expertise and AI-powered IBM Consulting Advantage platform with Google Cloud’s Gemini Enterprise AI platform.
IBM will utilize thousands of Google Cloud-certified consultants and engineers to help businesses deploy AI, modernize legacy systems and manage hybrid cloud environments. It is also developing industry-specific AI agents for sectors such as banking, telecommunications, government, retail, insurance, energy and life sciences, helping organizations automate tasks, improve decision-making and accelerate digital transformation while creating new growth opportunities for IBM’s consulting and software businesses.
The collaboration further strengthens the company’s expertise in cybersecurity, data management and cloud infrastructure. By integrating Google Cloud’s Gemini AI capabilities with its watsonx platform and using technologies such as Red Hat OpenShift, HashiCorp, Apptio, BigQuery and Confluent, IBM aims to help businesses improve automation, gain deeper data insights and enhance operational efficiency.
The agreement reinforces IBM's strategy of expanding its consulting, cloud and AI capabilities to support enterprise technology transformation. This initiative is likely to support stronger customer engagement and contribute to the company’s long-term growth prospects.
How Are Competitors Advancing in the AI Space?
IBM faces competition from Microsoft Corporation MSFT and Amazon.com, Inc. AMZN. Microsoft is expanding its AI offerings by adding new tools and models across its products and cloud services. The company is enhancing its Copilot assistant to help businesses and developers improve productivity. Microsoft is investing in infrastructure to support the growing demand for intelligent applications.
Amazon is strengthening its AI business through Amazon Web Services by offering advanced tools and services to customers. The company is improving Amazon Q, its AI assistant, to help organizations work more efficiently. Amazon is expanding its product portfolio to support the growing adoption of intelligent technologies across industries.
IBM’s Price Performance, Valuation & Estimates
IBM shares have gained 4.7% over the past year compared with the industry’s growth of 218.9%.
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From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 3.67, below the industry average of 6.18.
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Earnings estimates for 2026 have declined 0.3% to $12.40 over the past 60 days, while the same for 2027 have remained static at $13.36.
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IBM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).