Erste Group Bank Has Pessimistic View of IBM FY2026 Earnings

Key Points

• Erste Group Bank lowered its FY2026 EPS estimate for IBM to $12.28 from $12.36, below the $12.33 analyst consensus.
• Analyst sentiment remains broadly positive, with 15 Buy, 11 Hold and one Sell rating; the consensus rating is “Moderate Buy” with a $265.40 price target.
• IBM’s latest quarterly results matched EPS expectations at $2.93 but missed revenue estimates, while the company declared a quarterly dividend of $1.69 per share, yielding approximately 2.9% annually.

International Business Machines Corporation (NYSE:IBM - Free Report) - Equities research analysts at Erste Group Bank cut their FY2026 EPS estimates for shares of International Business Machines in a research report issued to clients and investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now expects that the technology company will post earnings of $12.28 per share for the year, down from their previous estimate of $12.36. The consensus estimate for International Business Machines' current full-year earnings is $12.33 per share.

A number of other analysts also recently commented on IBM. Wall Street Zen downgraded International Business Machines from a "hold" rating to a "sell" rating in a report on Saturday, July 18th. Needham & Company LLC started coverage on shares of International Business Machines in a research report on Wednesday, June 3rd. They set a "buy" rating for the company. Wolfe Research lowered shares of International Business Machines to a "peer perform" rating in a research note on Tuesday, June 23rd. Sanford C. Bernstein reissued a "market perform" rating on shares of International Business Machines in a research report on Thursday, July 16th. Finally, Piper Sandler raised International Business Machines to an "overweight" rating in a research report on Tuesday, June 23rd. Fifteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $265.40.

International Business Machines Price Performance

International Business Machines stock opened at $237.08 on Monday. The company has a market cap of $223.36 billion, a price-to-earnings ratio of 21.04, a PEG ratio of 2.33 and a beta of 0.70. The firm has a 50 day moving average price of $258.59 and a 200 day moving average price of $254.94. International Business Machines has a 1 year low of $199.19 and a 1 year high of $332.46. 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 (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates 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 firm's quarterly revenue was up 1.1% on a year-over-year basis. During the same period in the prior year, the firm earned $2.80 EPS.

Institutional Trading of International Business Machines

Several large investors have recently added to or reduced their stakes in the business. Family CFO Inc acquired a new stake in International Business Machines in the fourth quarter worth about $25,000. Basepoint Wealth LLC bought a new stake in shares of International Business Machines during the 4th quarter worth about $25,000. Portus Wealth Advisors LLC acquired a new stake in shares of International Business Machines in the 1st quarter worth approximately $26,000. Harborfront Financial Group LLC bought a new position in shares of International Business Machines in the second quarter valued at approximately $27,000. Finally, Joseph Group Capital Management bought a new position in International Business Machines during the 4th quarter valued at $28,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines's payout ratio is 59.98%.

Key International Business Machines News

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

• Positive Sentiment: IBM previewed Apptio AI Value & ROI, a tool designed to track AI spending—including token costs—and connect it with business outcomes. The offering could help enterprises justify AI investments and strengthen IBM’s position in AI governance and FinOps software. IBM previews Apptio AI Value & ROI to track AI spend and results
• Positive Sentiment: IBM’s Maximo Application Suite as a Service received FedRAMP Moderate authorization, allowing U.S. federal agencies to use its cloud-based asset-management tools in regulated environments. The approval may expand IBM’s government-cloud opportunity and provide a credibility boost for its software business. IBM Secures FedRAMP Moderate Authorization For Maximo
• Neutral Sentiment: Recent commentary describes IBM as a high-risk, mixed setup: software growth is strong, but declining mainframe sales and the aftermath of the earnings-related selloff could limit the rebound. Investors are weighing whether the recovery reflects value or unresolved operational risk. IBM’s Post-Collapse Rebound: A Complex Risk Reward Profile
• Negative Sentiment: Hagens Berman, Bleichmar Fonti & Auld, and Pomerantz announced investigations related to IBM’s reported financial disclosures and the severe post-earnings decline. These announcements do not establish wrongdoing, but they add legal uncertainty, reputational risk and potential shareholder-claim exposure. IBM Securities Fraud Investigation is Ongoing Pomerantz IBM investor investigation
• Negative Sentiment: Kyndryl reported ongoing IBM-related revenue declines, underscoring potential headwinds in legacy infrastructure and services. That weakness contrasts with IBM’s software momentum and may reinforce concerns about the company’s transition away from older businesses. Kyndryl earnings call highlights

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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