Erste Group Bank Has Strong Forecast for IBM FY2026 Earnings

International Business Machines Corporation (NYSE:IBM - Free Report) - Research analysts at Erste Group Bank increased their FY2026 earnings estimates for shares of International Business Machines in a report released on Monday, April 27th. Erste Group Bank analyst H. Engel now anticipates that the technology company will post earnings per share of $12.41 for the year, up from their previous forecast of $12.39. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for International Business Machines' current full-year earnings is $12.38 per share.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating the consensus estimate 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 firm had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same period last year, the firm earned $1.60 EPS. The business's quarterly revenue was up 9.5% compared to the same quarter last year.

IBM has been the subject of a number of other reports. UBS Group upgraded shares of International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price objective for the company in a research report on Wednesday, February 25th. Wedbush dropped their price objective on shares of International Business Machines from $340.00 to $320.00 and set an "outperform" rating for the company in a research note on Thursday, April 23rd. Weiss Ratings reissued a "buy (b)" rating on shares of International Business Machines in a research note on Tuesday, April 21st. Citigroup initiated coverage on shares of International Business Machines in a research note on Friday, April 10th. They issued a "buy" rating and a $285.00 price objective for the company. Finally, Jefferies Financial Group dropped their price objective on shares of International Business Machines from $370.00 to $320.00 and set a "buy" rating for the company in a research note on Monday, April 20th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $296.18.

International Business Machines Price Performance

IBM stock opened at $233.12 on Wednesday. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75. International Business Machines has a 12 month low of $220.72 and a 12 month high of $324.90. The firm has a market cap of $219.10 billion, a P/E ratio of 20.61, a P/E/G ratio of 2.36 and a beta of 0.69. The company's 50-day moving average price is $244.68 and its two-hundred day moving average price is $279.57.

Institutional Investors Weigh In On International Business Machines

A number of institutional investors have recently added to or reduced their stakes in IBM. Waverton Investment Management Ltd lifted its position in shares of International Business Machines by 3.3% in the 3rd quarter. Waverton Investment Management Ltd now owns 993,743 shares of the technology company's stock worth $280,439,000 after purchasing an additional 32,072 shares during the period. Newbridge Financial Services Group Inc. lifted its position in shares of International Business Machines by 30.0% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company's stock worth $3,887,000 after purchasing an additional 3,029 shares during the period. NEOS Investment Management LLC lifted its position in shares of International Business Machines by 51.7% during the 3rd quarter. NEOS Investment Management LLC now owns 114,395 shares of the technology company's stock valued at $32,278,000 after acquiring an additional 38,973 shares during the period. American National Bank & Trust lifted its position in shares of International Business Machines by 26.2% during the 3rd quarter. American National Bank & Trust now owns 12,537 shares of the technology company's stock valued at $3,537,000 after acquiring an additional 2,603 shares during the period. Finally, Advisors Capital Management LLC lifted its position in shares of International Business Machines by 3.8% during the 3rd quarter. Advisors Capital Management LLC now owns 347,155 shares of the technology company's stock valued at $97,953,000 after acquiring an additional 12,623 shares during the period. 58.96% of the stock is owned by institutional investors.

Insider Buying and Selling

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

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be issued a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Friday, May 8th. This is a positive change from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's payout ratio is presently 59.77%.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM launched "IBM Bob," an enterprise AI-first development partner (global availability; IBM cites ~80,000 employees using it and a reported ~45% productivity gain), a product that can directly drive software/service revenue and enterprise adoption. Introducing IBM Bob press release
• Positive Sentiment: Analysts and investors point to a near-term cash catalyst — IBM projects roughly $1 billion in added free cash flow, a rationale some see as a reason to buy the dip after the quarter. A $1 Billion Reason to Buy the Dip
• Positive Sentiment: Commentary from bullish outlets argues IBM’s quantum and AI positioning is underappreciated by the market, suggesting some investors are adding exposure on the view that the selloff was overdone. IBM’s Post‑Earnings Slide is Overdone
• Neutral Sentiment: Q1 results showed revenue and EPS beats and improving margins, but several analysts note the market remains unconvinced about the sustainability of margin expansion — a mixed read that can limit upside until guidance clarity emerges. IBM Is Growing and Margins Are Rising
• Neutral Sentiment: Market headlines and daily coverage are driving short-term volume swings; routine trading commentary notes IBM among names in focus as macro and index flows move. What's Going On With IBM Stock Tuesday?
• Negative Sentiment: Some analysts and columnists warn the quarter’s strength was partly cyclical (hardware/data-center demand) while high-margin consulting/software slowed — a structural concern that could cap valuation multiple expansion. A Strong Quarter Does Not Make IBM Stock A Strong Buy
• Negative Sentiment: Debate over digital sovereignty and enterprise control of AI surfaced in coverage; one piece frames IBM as acknowledging limits around “control” in AI deployments — a narrative that could raise customer concern or slow enterprise transitions for some buyers. Companies Want Control Over AI — But IBM Says They Don’t Have It

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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