International Business Machines (NYSE:IBM) Trading Up 3.8% – Here’s Why

Posted by Geri Gentry on Aug 27th, 2026

International Business Machines Corporation (NYSE:IBM – Get Free Report) traded up 3.8% during trading on Thursday . The company traded as high as $240.81 and last traded at $238.55. 5,485,696 shares traded hands during trading, a decline of 31% from the average daily volume of 7,921,721 shares. The stock had previously closed at $229.87.

Key International Business Machines News

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

Positive Sentiment: IBM and Arm Holdings expanded their collaboration around a dual-architecture IBM Z mainframe processor capable of running IBM and Arm instructions on the same core. The development supports IBM’s infrastructure strategy and helped lift investor interest in both companies. IBM dual-architecture mainframe article
Positive Sentiment: Investors are reassessing IBM’s enterprise-AI opportunity following its partnership to bring OpenAI models and products to IBM Consulting Advantage. The company continues to forecast 4%–5% constant-currency revenue growth in 2026 and approximately $1 billion of year-over-year free-cash-flow growth, supporting the longer-term investment case.
Positive Sentiment: IBM completed its acquisition of HRL Laboratories, adding capabilities in quantum computing, quantum sensing, advanced communications, materials and manufacturing. The deal could accelerate IBM’s quantum roadmap and broaden its advanced-technology research base. IBM HRL Laboratories acquisition article
Positive Sentiment: Institutional positioning was broadly supportive in recent filings, with major investors including JPMorgan, Wellington Management and FMR reporting additional IBM shares. Analysts’ reported median price target of $315 also indicates potential upside from recent trading levels, though targets are not guarantees.
Neutral Sentiment: IBM is promoting AI-powered US Open fan experiences and publishing research on AI’s impact on sports fandom. These efforts reinforce IBM’s marketing and commercial-AI visibility but are unlikely to materially affect near-term revenue. IBM US Open fan experience article
Negative Sentiment: Some analysts questioned the commercial significance and timing of IBM’s recent quantum milestone, limiting enthusiasm for the announcement. IBM also faces an announced securities-fraud investigation, which adds headline and litigation risk, although no wrongdoing has been established. IBM quantum milestone analyst reaction

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Needham & Company LLC began coverage on International Business Machines in a research note on Wednesday, June 3rd. They set a “buy” rating for the company. KeyCorp cut shares of International Business Machines to a “sector weight” rating in a report on Tuesday, June 23rd. Craig Hallum began coverage on shares of International Business Machines in a research report on Wednesday, August 19th. They issued a “buy” rating on the stock. Oppenheimer lowered shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 15th. Finally, Piper Sandler raised International Business Machines to an “overweight” rating in a research note on Tuesday, June 23rd. Sixteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $265.40.

View Our Latest Research Report on International Business Machines

International Business Machines Stock Up 3.8%

The firm’s 50 day simple moving average is $245.07 and its 200-day simple moving average is $249.17. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The stock has a market capitalization of $224.75 billion, a price-to-earnings ratio of 21.17, a price-to-earnings-growth ratio of 2.30 and a beta of 0.70.

International Business Machines (NYSE:IBM – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts’ consensus estimates of $2.93. The company had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company’s quarterly revenue was up 1.1% on a year-over-year basis. During the same period in the prior year, the business posted $2.80 EPS. Equities analysts expect that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is currently 59.98%.

Institutional Investors Weigh In On International Business Machines

Several large investors have recently made changes to their positions in IBM. VIRGINIA RETIREMENT SYSTEMS ET Al raised its holdings in shares of International Business Machines by 424.6% during the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock valued at $77,234,000 after purchasing an additional 211,040 shares during the period. Assetmark Inc. boosted its position in shares of International Business Machines by 24.8% during the 1st quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock worth $15,624,000 after purchasing an additional 12,791 shares in the last quarter. GLOBALT Investments LLC GA grew its stake in shares of International Business Machines by 19.1% in the 4th quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock valued at $5,417,000 after buying an additional 2,930 shares during the period. Rice Partnership LLC bought a new stake in International Business Machines in the 4th quarter valued at about $3,317,000. Finally, Sage Investment Advisers LLC acquired a new position in International Business Machines during the 4th quarter worth approximately $4,101,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

About International Business Machines

(Get Free Report)

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.