International Business Machines (NYSE:IBM) Releases Q2 2026 Earnings Guidance

International Business Machines (NYSE:IBM) updated its second quarter 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 2.930-2.930 for the period, compared to the consensus estimate of 3.020. The company issued revenue guidance of $17.2 billion-$17.2 billion, compared to the consensus revenue estimate of $17.9 billion.

International Business Machines Price Performance

IBM opened at $290.46 on Tuesday. The stock has a market capitalization of $273.00 billion, a P/E ratio of 25.68, a PEG ratio of 2.78 and a beta of 0.68. International Business Machines has a 12-month low of $212.34 and a 12-month high of $332.46. The stock has a 50-day moving average price of $264.95 and a 200-day moving average price of $265.82. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. During the same period in the prior year, the business posted $1.60 earnings per share. International Business Machines’s revenue for the quarter was up 9.5% on a year-over-year basis. Equities analysts predict that International Business Machines will post 12.45 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were given a $1.69 dividend. The ex-dividend date was Friday, May 8th. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.3%. International Business Machines’s dividend payout ratio (DPR) is currently 59.77%.

Wall Street Analyst Weigh In

Several research firms have commented on IBM. Citigroup increased their price objective on shares of International Business Machines from $285.00 to $375.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Roth Capital reissued a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. Morgan Stanley boosted their target price 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. Weiss Ratings downgraded shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, June 24th. Finally, DZ Bank raised International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 target price on the stock in a research note on Friday, April 24th. Fifteen analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $307.72.

Key International Business Machines News

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

• Positive Sentiment: IBM released Arvind Krishna’s letter to investors alongside selected preliminary second-quarter 2026 financial results, giving the market an early look at performance ahead of the full earnings report. Arvind Krishna’s Letter to IBM Investors
• Positive Sentiment: Several articles highlighted IBM as attractively valued, with Jim Cramer calling the stock inexpensive and praising CEO Arvind Krishna’s execution, which may reinforce investor confidence. Jim Cramer Says Buy IBM Right Now
• Positive Sentiment: Coverage around IBM’s AI and quantum initiatives, including updates to its Bob AI platform and attention on quantum tech at a Capitol Hill showcase, suggests the market is watching for long-term growth catalysts. IBM Just Unveiled Major Updates to Its Bob AI Platform
• Positive Sentiment: IBM was also featured in commentary about dividend growth and total-return potential, which can appeal to income-focused investors during volatile markets. 3 Dividend Stocks with Growth on Tap for the Second Half
• Neutral Sentiment: Some articles were more mixed, with one comparison piece saying HubSpot has a stronger AI growth profile and a lower valuation than IBM, which could temper enthusiasm somewhat. HubSpot vs. IBM
• Negative Sentiment: One report noted IBM shares had been down recently, and another asked whether IBM can stay steady through an “AI reset,” suggesting some lingering skepticism about the pace of the company’s re-rating. International Business Machines Shares Down 2.5% – What’s Next?

Institutional Investors Weigh In On International Business Machines

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. First Commonwealth Financial Corp PA boosted its holdings in International Business Machines by 2.9% in the 4th quarter. First Commonwealth Financial Corp PA now owns 3,899 shares of the technology company’s stock worth $1,155,000 after buying an additional 109 shares during the last quarter. Blue Sparrow LLC DE acquired a new position in International Business Machines in the fourth quarter valued at about $27,841,000. Mercer Global Advisors Inc. ADV boosted its stake in shares of International Business Machines by 2.8% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 266,729 shares of the technology company’s stock valued at $79,094,000 after buying an additional 7,167 shares during the period. Summit Global Investments acquired a new stake in shares of International Business Machines during the 4th quarter worth about $1,246,000. Finally, Raymond James Financial Inc. raised its stake in International Business Machines by 6.8% during the 4th quarter. Raymond James Financial Inc. now owns 2,820,494 shares of the technology company’s stock worth $838,207,000 after acquiring an additional 179,071 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Company Profile

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.