International Business Machines (NYSE:IBM) Releases Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Posted by Brian Himes on Jul 22nd, 2026

International Business Machines (NYSE:IBM – Get Free Report) issued its quarterly earnings results on Wednesday. The technology company reported $2.93 earnings per share for the quarter, missing the consensus estimate of $2.97 by ($0.04), FiscalAI reports. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.86 billion.

International Business Machines Price Performance

Shares of IBM traded down $4.47 during trading hours on Wednesday, reaching $206.03. The company had a trading volume of 13,382,359 shares, compared to its average volume of 8,099,053. The company has a market capitalization of $193.64 billion, a price-to-earnings ratio of 18.22, a PEG ratio of 2.30 and a beta of 0.68. International Business Machines has a 12-month low of $204.44 and a 12-month high of $332.46. The firm has a 50 day simple moving average of $263.44 and a 200-day simple moving average of $262.05. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75.

Wall Street Analyst Weigh In

IBM has been the subject of a number of analyst reports. Stifel Nicolaus cut their price objective on shares of International Business Machines from $290.00 to $235.00 and set a “buy” rating for the company in a research report on Monday. Argus lowered their target price on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a report on Thursday, July 16th. Robert W. Baird assumed coverage on shares of International Business Machines in a research note on Tuesday. They set a “neutral” rating and a $230.00 price target on the stock. Morgan Stanley increased their price target on shares of International Business Machines from $267.00 to $293.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 14th. Finally, Piper Sandler raised International Business Machines to an “overweight” rating in a report on Tuesday, June 23rd. Fifteen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, International Business Machines currently has a consensus rating of “Moderate Buy” and a consensus target price of $278.68.

Check Out Our Latest Report on IBM

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. SWAN Capital LLC acquired a new stake in shares of International Business Machines in the 3rd quarter worth approximately $28,000. Greenline Wealth Management LLC purchased a new stake in International Business Machines during the fourth quarter worth $33,000. Quarry LP acquired a new stake in International Business Machines in the fourth quarter valued at $41,000. Acumen Wealth Advisors LLC acquired a new stake in International Business Machines in the fourth quarter valued at $44,000. Finally, Jessup Wealth Management Inc purchased a new position in shares of International Business Machines in the fourth quarter valued at $52,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines News Summary

Here are the key news stories impacting International Business Machines this week:

Positive Sentiment: Some commentary suggests IBM may be undervalued after the pullback, with one valuation-focused article arguing the stock could be a bargain at current levels. IBM Stock Looks Like A Bargain At Current Levels
Positive Sentiment: One earnings-preview piece highlighted continued AI momentum as a potential factor that could help restore investor confidence if management delivers reassuring guidance. IBM Earnings in Focus: Can AI momentum revive investor confidence?
Neutral Sentiment: IBM is due to report full Q2 results, and several previews say the market is focused on management’s outlook, sales pipeline commentary, dividend support, and whether the company can explain the recent profit warning. IBM to Report Full Q2 Results After Its Historic Stock Crash – Here’s What Investors Will Watch
Negative Sentiment: Multiple law firms have launched securities-fraud investigations into IBM following the steep stock drop and the July 14 guidance cut, adding headline risk and reinforcing concerns about the quality of prior disclosures. IBM Investigation Notice: IBM Product Slowdown and 25% Stock Drop Trigger Securities Fraud Investigation

About International Business Machines

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International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM’s principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.