International Business Machines Corporation (NYSE:IBM – Free Report) – Equities research analysts at Erste Group Bank boosted their FY2027 EPS estimates for shares of International Business Machines in a research report issued to clients and investors on Wednesday, October 21st. Erste Group Bank analyst H. Engel now expects that the technology company will post earnings of $13.40 per share for the year, up from their prior estimate of $13.13. The consensus estimate for International Business Machines’ current full-year earnings is $12.34 per share.
International Business Machines (NYSE:IBM – Get Free Report) last posted its earnings results on Wednesday, October 21st. The technology company reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.85 by $0.10. International Business Machines had a return on equity of 35.08% and a net margin of 15.99%. The firm had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. During the same quarter in the prior year, the business posted $2.65 earnings per share. The business’s quarterly revenue was up 4.7% on a year-over-year basis.
A number of other research analysts have also weighed in on IBM. JPMorgan Chase & Co. lifted their target price on International Business Machines from $250.00 to $269.00 and gave the company an “overweight” rating in a report on Thursday. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a report on Wednesday, July 15th. Susquehanna raised their price objective on shares of International Business Machines from $235.00 to $256.00 and gave the company a “neutral” rating in a research report on Wednesday. Argus reduced their price objective on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a research note on Thursday, July 16th. Finally, Citic Securities upped their target price on shares of International Business Machines from $294.00 to $297.00 and gave the stock a “buy” rating in a report on Wednesday, July 29th. Twenty equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $266.12.
International Business Machines Stock Performance
NYSE:IBM opened at $252.42 on Friday. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. International Business Machines has a 52-week low of $199.19 and a 52-week high of $332.46. The firm has a market cap of $237.81 billion, a price-to-earnings ratio of 22.40, a PEG ratio of 2.42 and a beta of 0.73. The business’s fifty day moving average is $232.68 and its 200 day moving average is $243.63.
Hedge Funds Weigh In On International Business Machines
A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in shares of International Business Machines during the 2nd quarter worth $21,586,659,000. State Street Corp increased its stake in International Business Machines by 2.7% in the second quarter. State Street Corp now owns 56,045,055 shares of the technology company’s stock valued at $15,760,430,000 after acquiring an additional 1,450,562 shares during the last quarter. Bank of America Corp DE bought a new position in International Business Machines in the second quarter valued at $4,214,868,000. Bank of New York Mellon Corp purchased a new stake in International Business Machines during the second quarter valued at about $2,606,782,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in International Business Machines by 0.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,621,512 shares of the technology company’s stock valued at $2,143,245,000 after purchasing an additional 53,388 shares in the last quarter. Institutional investors own 58.96% of the company’s stock.
Insider Buying and Selling at International Business Machines
In related news, SVP Robert Thomas sold 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.27% of the company’s stock.
International Business Machines Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be issued a dividend of $1.69 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. International Business Machines’s payout ratio is presently 59.98%.
Trending Headlines about International Business Machines
Here are the key news stories impacting International Business Machines this week:
- Positive Sentiment: Quarterly results exceeded expectations. IBM reported adjusted earnings of $2.95 per share versus an approximately $2.85–$2.88 consensus, while revenue rose 4.7% year over year to $17.10 billion, ahead of the roughly $16.82 billion estimate. Net income increased to $2.19 billion from $1.74 billion a year earlier. IBM third-quarter results
- Positive Sentiment: Software growth rebounded. Software revenue growth accelerated to 9% at constant currency from 5% in the second quarter, supported by Red Hat, transaction processing and the Confluent acquisition. Infrastructure revenue also grew, helped by the return of previously delayed contracts. IBM software growth article
- Positive Sentiment: Cash-flow outlook improved. IBM raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion from the prior year. Third-quarter free cash flow was approximately $3 billion, up about $700 million year over year. The company also declared a quarterly dividend of $1.69 per share. IBM free-cash-flow outlook
- Neutral Sentiment: Analysts raised targets. JPMorgan, RBC, Stifel and other firms increased their IBM price targets following the results, reflecting improved confidence in software execution and cash generation.
- Negative Sentiment: Growth durability remains a concern. IBM maintained its full-year constant-currency revenue-growth forecast of 4% to 5%, and management’s outlook suggests a slower fourth quarter. Investors are also questioning how much of the software acceleration came from Confluent rather than underlying organic growth. Reuters report on IBM software rebound
- Negative Sentiment: Valuation and AI commentary temper the response. IBM trades at a premium valuation despite modest overall growth, while CEO Arvind Krishna’s comments that lower-cost open AI models may deliver comparable performance raised questions about enterprise AI spending and future monetization.
About International Business Machines
International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.
IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.
Featured Stories
- Five stocks we like better than International Business Machines
- Microsoft’s Earnings Problem: Even Great May Not Be Enough
- 3 Stocks With Yields Big Enough to Make Election Volatility Easier to Stomach
- Is Texas Instruments Setting Up for Its Next Big Breakout?
- Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow
Receive News & Ratings for International Business Machines Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for International Business Machines and related companies with MarketBeat.com's FREE daily email newsletter.
