Erste Group Bank Issues Positive Estimate for IBM Earnings

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for IBM to $13.49 (from $13.35) but kept a "Hold" rating, while consensus current full‑year earnings stand at $12.38 per share.
• IBM beat Q1 expectations, reporting $1.91 EPS versus $1.81 expected and revenue of $15.92 billion (up 9.5% year‑over‑year), with a net margin of 15.61%.
• Strategic AI/quantum push and shareholder returns: IBM announced new AI and quantum hubs, the MIT‑IBM lab and product partnerships (including the "IBM Bob" tool) to bolster services and software revenue, and raised its quarterly dividend to $1.69 (3.0% yield).

International Business Machines Corporation (NYSE:IBM - Free Report) - Erste Group Bank increased their FY2027 EPS estimates for shares of International Business Machines in a research note issued on Monday, April 27th. Erste Group Bank analyst H. Engel now expects that the technology company will earn $13.49 per share for the year, up from their prior estimate of $13.35. 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.

Other analysts also recently issued research reports about the stock. Citigroup initiated coverage on shares of International Business Machines in a report on Friday, April 10th. They set a "buy" rating and a $285.00 price target for the company. JPMorgan Chase & Co. cut their price target on shares of International Business Machines from $317.00 to $283.00 and set a "neutral" rating for the company in a report on Wednesday, March 18th. Dbs Bank upgraded shares of International Business Machines from a "hold" rating to a "moderate buy" rating in a report on Monday, January 19th. Wall Street Zen downgraded shares of International Business Machines from a "buy" rating to a "hold" rating in a report on Sunday, January 11th. Finally, UBS Group upgraded shares of International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 price target for the company in a report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, International Business Machines currently has an average rating of "Moderate Buy" and an average target price of $296.18.

International Business Machines Stock Down 2.7%

Shares of NYSE IBM opened at $226.86 on Thursday. The company has a 50 day simple moving average of $244.00 and a 200-day simple moving average of $279.20. The company has a market capitalization of $213.22 billion, a P/E ratio of 20.06, a P/E/G ratio of 2.36 and a beta of 0.69. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. International Business Machines has a 1 year low of $220.72 and a 1 year high of $324.90.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating analysts' consensus estimates of $1.81 by $0.10. The company had revenue of $15.92 billion during the quarter, compared to the consensus estimate of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. International Business Machines's quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.60 EPS.

Hedge Funds Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently added to or reduced their stakes in IBM. Brighton Jones LLC boosted its position in International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company's stock valued at $4,619,000 after buying an additional 2,323 shares during the period. Sivia Capital Partners LLC boosted its position in International Business Machines by 10.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock valued at $571,000 after buying an additional 186 shares during the period. Jump Financial LLC purchased a new position in International Business Machines in the 2nd quarter valued at approximately $211,000. Ieq Capital LLC boosted its position in International Business Machines by 2.2% in the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company's stock valued at $11,383,000 after buying an additional 843 shares during the period. Finally, Vivaldi Capital Management LP boosted its position in International Business Machines by 11.6% in the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company's stock valued at $300,000 after buying an additional 106 shares during the period. Hedge funds and other institutional investors own 58.96% of the company's stock.

Insider Activity at International Business Machines

In related news, Director David N. Farr bought 1,000 shares of the company's stock in a transaction that occurred on Friday, January 30th. The stock was purchased at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the acquisition, the director owned 9,258 shares of the company's stock, valued at approximately $2,814,432. This trade represents a 12.11% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Michael Miebach bought 434 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The stock was bought at an average price of $233.33 per share, with a total value of $101,265.22. Following the acquisition, the director directly owned 434 shares in the company, valued at $101,265.22. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased a total of 1,484 shares of company stock valued at $417,157 in the last quarter. 0.27% of the stock is owned by insiders.

International Business Machines Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be issued a $1.69 dividend. This is a boost from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date is Friday, May 8th. This represents a $6.76 annualized dividend and a yield of 3.0%. International Business Machines's payout ratio is 59.77%.

Key International Business Machines News

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

• Positive Sentiment: Erste Group raised its EPS forecasts — the bank bumped its FY2027 EPS estimate to $13.49 (from $13.35) and slightly raised FY2026 to $12.41, signaling analysts see stronger earnings momentum than before. (Erste retains a "Hold" rating.)
• Positive Sentiment: HSBC upgraded IBM, adding institutional-level backing that can support demand for the shares from funds that track analyst signals. Read More.
• Positive Sentiment: Major AI/quantum investments — IBM announced two new AI and quantum hubs (Illinois and Massachusetts) and the MIT‑IBM Computing Research Lab, plus a FutureNow delivery center in Chicago that promises 750 tech jobs; these moves reinforce IBM’s long-term positioning in AI, quantum and services revenue. Read More. Read More.
• Positive Sentiment: New products and partnerships — IBM launched an AI development tool called “IBM Bob” (productivity driver for software builds) and announced collaborations (Dallara for physics-based AI/quantum vehicle design; Entrust for quantum‑safe cryptography with IBM Consulting), which can expand software/services revenue and consulting engagements. Read More. Read More. Read More.
• Neutral Sentiment: Semiconductor cooperation noted — a separate report highlights a five‑year co‑development pact between Lam Research and IBM on advanced chip manufacturing (High‑NA EUV). This could be strategically positive for IBM’s hardware/quantum ecosystem but is longer‑term and contingent on execution. Read More.
• Negative Sentiment: Market skepticism and recent pullback — despite upbeat Q1 results and margin commentary, several pieces point to investor caution (sell‑the‑news, volatility trades and "is it time to revisit" narratives). That sentiment is likely the main near‑term headwind pressuring the stock. Read More. 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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