BMO Capital Markets Has Lowered Expectations for International Business Machines (NYSE:IBM) Stock Price

Key Points

• BMO Capital Markets lowered its IBM price target from $290 to $270 and kept a "market perform" rating, implying roughly a 16% upside from the current share price.
• IBM beat Q1 expectations with $1.91 EPS (vs. $1.81) and $15.92B revenue and raised its quarterly dividend to $1.69, but shares fell after-hours as management left FY‑2026 guidance unchanged and investors flagged softer software/consulting growth and AI disruption risks.
• Analyst opinions are mixed: the consensus is a "Moderate Buy" with an average target of $298.19, while individual targets and ratings range from sell/neutral adjustments to outperform calls with targets as high as $345, reflecting divergent views on IBM's outlook.

International Business Machines (NYSE:IBM - Get Free Report) had its target price decreased by analysts at BMO Capital Markets from $290.00 to $270.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has a "market perform" rating on the technology company's stock. BMO Capital Markets' target price indicates a potential upside of 15.99% from the company's current price.

IBM has been the topic of several other research reports. Dbs Bank upgraded shares of International Business Machines from a "hold" rating to a "moderate buy" rating in a report on Monday, January 19th. Morgan Stanley upped their price target on shares of International Business Machines from $215.00 to $225.00 and gave the company an "equal weight" rating in a report on Thursday. UBS Group raised International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price objective for the company in a report on Wednesday, February 25th. Citigroup began coverage on International Business Machines in a research report on Friday, April 10th. They set a "buy" rating and a $285.00 price target for the company. Finally, Evercore lifted their target price on shares of International Business Machines from $330.00 to $345.00 and gave the company an "outperform" rating in a report on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $298.19.

International Business Machines Stock Down 9.0%

Shares of NYSE IBM opened at $232.79 on Thursday. The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67. The firm's fifty day moving average is $247.04 and its 200 day moving average is $281.21. The company has a market cap of $218.36 billion, a price-to-earnings ratio of 20.88, a PEG ratio of 2.68 and a beta of 0.69. International Business Machines has a 52 week low of $220.72 and a 52 week high of $324.90.

International Business Machines (NYSE:IBM - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, beating analysts' consensus estimates of $1.81 by $0.10. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The business had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same period in the prior year, the company earned $1.60 earnings per share. The company's revenue was up 9.5% on a year-over-year basis. On average, equities research analysts expect that International Business Machines will post 12.34 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Michael Miebach bought 434 shares of the stock in a transaction dated Wednesday, February 25th. The shares were acquired at an average cost of $233.33 per share, for a total transaction of $101,265.22. Following the acquisition, the director directly owned 434 shares in the company, valued at approximately $101,265.22. This trade represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director David N. Farr acquired 1,000 shares of International Business Machines stock in a transaction that occurred on Friday, January 30th. The shares were bought at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the transaction, the director owned 9,258 shares of the company's stock, valued at $2,814,432. This represents a 12.11% increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired a total of 1,484 shares of company stock worth $417,157 over the last three months. Corporate insiders own 0.27% of the company's stock.

Institutional Investors Weigh In On International Business Machines

Hedge funds and other institutional investors have recently bought and sold shares of the company. Family CFO Inc purchased a new stake in shares of International Business Machines in the 4th quarter valued at approximately $25,000. Basepoint Wealth LLC purchased a new stake in shares of International Business Machines during the 4th quarter valued at approximately $25,000. Portus Wealth Advisors LLC acquired a new position in International Business Machines in the first quarter valued at approximately $26,000. Mountain Hill Investment Partners Corp. purchased a new position in International Business Machines in the third quarter worth approximately $28,000. Finally, Joseph Group Capital Management acquired a new stake in International Business Machines during the fourth quarter worth $28,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: Q1 beat on top and bottom lines — IBM posted $1.91 EPS vs. $1.81 expected and revenue of $15.92B, driven by double‑digit software and infrastructure growth. This confirms continued demand tied to AI and hybrid‑cloud services. Read More.
• Positive Sentiment: Mainframe/infrastructure strength — IBM reported strong Z mainframe hardware growth (management cited ~51% growth) and robust infrastructure contribution, supporting recurring revenue and cash flow. Read More.
• Positive Sentiment: Dividend lifted — IBM declared a quarterly dividend of $1.69 (ex‑dividend May 8), a small increase that supports the stock’s income profile and yield (about 2.7%).
• Neutral Sentiment: Full disclosures available — The earnings call transcript and slide deck are posted for investors to drill into segment metrics and backlog/AI pipeline details. Use these to assess sustainability of AI‑related demand. Read More.
• Negative Sentiment: After‑hours selloff — Shares fell notably in after‑hours trading as investors focused on the unchanged FY‑2026 guidance and signs of slowing Red Hat Enterprise Linux growth. That reaction pressured the stock into the next session. Read More.
• Negative Sentiment: Software/consulting worries and AI disruption risk — Reports and analyst commentary flagged weaker-than-expected software revenue growth and consulting softness, reviving market fears that generative AI could disrupt legacy software monetization. Read More.
• Negative Sentiment: Analyst reaction — Some firms trimmed targets (Jefferies lowered its IBM price target while keeping a Buy), signaling valuation caution despite the beat. Read More.

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.

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