Equities Analysts Offer Predictions for IBM FY2026 Earnings

International Business Machines Corporation (NYSE:IBM) – Analysts at Erste Group Bank decreased their FY2026 earnings estimates for International Business Machines in a research note issued to investors on Monday, July 27th. Erste Group Bank analyst H. Engel now forecasts that the technology company will earn $12.36 per share for the year, down from their previous estimate of $12.39. The consensus estimate for International Business Machines’ current full-year earnings is $12.34 per share. Erste Group Bank also issued estimates for International Business Machines’ FY2027 earnings at $13.14 EPS.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting the consensus estimate of $2.93. The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same period last year, the business posted $2.80 earnings per share.

Several other analysts also recently commented on IBM. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of International Business Machines in a research note on Thursday, July 16th. HSBC set a $175.00 target price on International Business Machines and gave the company a “reduce” rating in a research note on Thursday, July 16th. BMO Capital Markets dropped their price target on International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research report on Thursday, July 23rd. Barclays cut their price objective on International Business Machines from $288.00 to $262.00 and set an “overweight” rating on the stock in a report on Thursday, July 23rd. Finally, Stifel Nicolaus decreased their price objective on International Business Machines from $290.00 to $235.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Fifteen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and a consensus target price of $265.40.

International Business Machines Price Performance

Shares of IBM stock opened at $227.42 on Wednesday. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. International Business Machines has a 12-month low of $199.19 and a 12-month high of $332.46. The firm has a fifty day moving average of $262.88 and a 200-day moving average of $259.16. The firm has a market capitalization of $214.26 billion, a price-to-earnings ratio of 20.18, a price-to-earnings-growth ratio of 2.12 and a beta of 0.68.

International Business Machines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 3.0%. International Business Machines’s dividend payout ratio is presently 59.98%.

Hedge Funds Weigh In On International Business Machines

A number of large investors have recently added to or reduced their stakes in IBM. VIRGINIA RETIREMENT SYSTEMS ET Al grew its stake in shares of International Business Machines by 424.6% in 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 buying an additional 211,040 shares in the last quarter. Assetmark Inc. raised its position in International Business Machines by 24.8% during the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock worth $15,624,000 after acquiring an additional 12,791 shares in the last quarter. GLOBALT Investments LLC GA lifted its stake in International Business Machines by 19.1% in the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock valued at $5,417,000 after acquiring an additional 2,930 shares during the last quarter. Newbridge Financial Services Group Inc. lifted its stake in International Business Machines by 30.0% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock valued at $3,887,000 after acquiring an additional 3,029 shares during the last quarter. Finally, Rice Partnership LLC bought a new position in shares of International Business Machines in the 4th quarter valued at about $3,317,000. Institutional investors own 58.96% of the company’s stock.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM’s 2026 Cost of a Data Breach Report highlights worsening cyber threats: AI-enabled attacks accounted for one in four malicious breaches and cost companies an average of $6 million. The findings reinforce demand for IBM’s cybersecurity, AI governance and consulting offerings. IBM Study: One in Four Malicious Breaches are AI-Enabled
• Positive Sentiment: Resecurity launched a native threat-intelligence integration for IBM QRadar SIEM, potentially strengthening QRadar’s enterprise ecosystem and supporting IBM’s security software business. Resecurity Introduces Native Integration with IBM QRadar SIEM
• Positive Sentiment: IBM’s acquisition of HRL Laboratories is positioned as a long-term investment in quantum computing, although the financial benefits are likely to take time to materialize. IBM Just Made a Bold Quantum Computing Bet
• Positive Sentiment: Recent insider activity cited in market coverage showed three open-market purchases and no sales, while the reported analyst price-target average remained well above the current trading level. These signals may be supporting the rebound, though they are not guarantees of future performance.
• Neutral Sentiment: Circle agreed to acquire nearly 1,000 IBM blockchain patents. The sale could monetize noncore intellectual property, but it also transfers IBM’s blockchain portfolio to Circle and no financial terms were disclosed. Circle to Acquire Nearly 1,000 IBM Blockchain Patents
• Negative Sentiment: Erste Group Bank trimmed its FY2026 EPS estimate to $12.36 from $12.39 and its FY2027 forecast to $13.14 from $13.38, signaling modestly softer expectations.
• Negative Sentiment: Several law firms are investigating potential securities-law violations tied to IBM’s reported IBM Z product slowdown and shortfall in new business deals. The investigations follow a previously reported sharp selloff and could prolong uncertainty, although they do not establish wrongdoing. IBM Securities Fraud Investigation

About International Business Machines

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.