Equities Analysts Set Expectations for IBM FY2025 Earnings

Key Points

• Wedbush analysts have raised their FY2025 earnings per share estimate for IBM to $11.44, up from $11.15, surpassing the current consensus estimate of $10.78.
• IBM recently reported Q3 earnings of $2.65 per share, exceeding estimates by 20 cents, with a revenue of $16.33 billion that also beat predictions.
• The company declared a quarterly dividend of $1.68 per share, with a current yield of 2.4%, signaling ongoing returns to investors despite a high payout ratio of 109.09%.

International Business Machines Corporation (NYSE:IBM - Free Report) - Equities research analysts at Wedbush upped their FY2025 earnings per share estimates for International Business Machines in a research note issued on Wednesday, October 22nd. Wedbush analyst D. Ives now forecasts that the technology company will post earnings per share of $11.44 for the year, up from their previous forecast of $11.15. The consensus estimate for International Business Machines' current full-year earnings is $10.78 per share. Wedbush also issued estimates for International Business Machines' Q4 2025 earnings at $4.38 EPS, Q1 2026 earnings at $1.74 EPS, Q2 2026 earnings at $2.92 EPS, Q3 2026 earnings at $2.86 EPS, Q4 2026 earnings at $4.58 EPS and FY2026 earnings at $12.11 EPS.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, October 22nd. The technology company reported $2.65 earnings per share for the quarter, beating the consensus estimate of $2.45 by $0.20. The business had revenue of $16.33 billion for the quarter, compared to the consensus estimate of $16.10 billion. International Business Machines had a return on equity of 37.99% and a net margin of 12.09%.The business's quarterly revenue was up 9.1% compared to the same quarter last year. During the same quarter last year, the business posted $2.30 earnings per share. International Business Machines has set its FY 2025 guidance at EPS.

Other equities analysts also recently issued research reports about the company. Royal Bank Of Canada decreased their target price on International Business Machines from $315.00 to $300.00 and set an "outperform" rating on the stock in a research report on Thursday. JPMorgan Chase & Co. raised their target price on International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Bank of America raised their target price on International Business Machines from $310.00 to $315.00 and gave the company a "buy" rating in a research report on Thursday. Sanford C. Bernstein began coverage on International Business Machines in a report on Monday, September 15th. They issued a "market perform" rating and a $280.00 price target for the company. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of International Business Machines in a report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $288.00.

International Business Machines Stock Performance

NYSE IBM opened at $283.91 on Friday. The company has a market cap of $263.86 billion, a PE ratio of 33.96, a price-to-earnings-growth ratio of 4.42 and a beta of 0.73. The stock's 50 day simple moving average is $264.85 and its 200-day simple moving average is $262.96. International Business Machines has a 1-year low of $203.51 and a 1-year high of $301.04. The company has a debt-to-equity ratio of 2.00, a current ratio of 0.91 and a quick ratio of 0.87.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, December 10th. Investors of record on Monday, November 10th will be issued a $1.68 dividend. This represents a $6.72 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Monday, November 10th. International Business Machines's dividend payout ratio (DPR) is currently 109.09%.

Institutional Investors Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in International Business Machines by 2.1% during the second quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company's stock worth $28,019,274,000 after acquiring an additional 1,913,708 shares during the last quarter. State Street Corp increased its stake in International Business Machines by 0.3% during the second quarter. State Street Corp now owns 54,536,963 shares of the technology company's stock worth $16,076,406,000 after acquiring an additional 147,721 shares during the last quarter. Geode Capital Management LLC increased its stake in International Business Machines by 1.9% during the second quarter. Geode Capital Management LLC now owns 21,936,235 shares of the technology company's stock worth $6,444,527,000 after acquiring an additional 400,131 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in International Business Machines by 6.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,636,725 shares of the technology company's stock worth $2,147,608,000 after acquiring an additional 524,633 shares during the last quarter. Finally, Legal & General Group Plc increased its stake in International Business Machines by 3.4% during the second quarter. Legal & General Group Plc now owns 7,126,503 shares of the technology company's stock worth $2,100,751,000 after acquiring an additional 234,318 shares during the last quarter. Institutional investors and hedge funds own 58.96% of the company's stock.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

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