**IBM and Microsoft Cloud Competition Intensifies**
International Business Machines Corporation (IBM) and Microsoft Corporation (MSFT) are key players in the global cloud computing market, focusing heavily on hybrid cloud and artificial intelligence (AI). As of now, Microsoft’s Azure holds approximately 25% of the enterprise cloud market share, while IBM continues to enhance its hybrid cloud solutions, aided by its acquisition of HashiCorp.
For fiscal years 2025 and 2026, Zacks Consensus Estimates forecast IBM’s sales and EPS growth at 6.8% and 10.2%, respectively, and Microsoft’s at 15.4% and 14.4%. Over the past year, IBM’s stock has risen by 37.7%, although it lags behind the industry’s average growth of 91.4%. In contrast, Microsoft’s stock gained 10.2% in the same period. Despite IBM’s better valuation metrics, Microsoft currently holds a more favorable investment outlook based on Zacks ranks, with IBM designated as a “Hold” and Microsoft a “Buy.”
