FY2027 Earnings Estimate for IBM Issued By Erste Group Bank

Key Points

• Erste Group Bank nudged down its FY2027 EPS estimate for IBM to $13.35 (from $13.38) and maintains a Hold rating on the stock.
• IBM recently reported quarterly results that beat expectations, with EPS of $4.52 and revenue of $19.69 billion, driven by a 12.2% year‑over‑year revenue increase.
• Brokerage coverage remains broadly positive, with a MarketBeat consensus of Moderate Buy and an average price target of $314.60.

International Business Machines Corporation (NYSE:IBM - Free Report) - Equities researchers at Erste Group Bank cut their FY2027 earnings estimates for shares of International Business Machines in a research report issued on Tuesday, March 24th. Erste Group Bank analyst H. Engel now expects that the technology company will earn $13.35 per share for the year, down from their prior estimate of $13.38. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for International Business Machines' current full-year earnings is $10.78 per share.

International Business Machines (NYSE:IBM - Get Free Report) last posted its earnings results on Wednesday, January 28th. The technology company reported $4.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.33 by $0.19. The business had revenue of $19.69 billion during the quarter, compared to analyst estimates of $19.23 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.The company's revenue for the quarter was up 12.2% compared to the same quarter last year. During the same quarter last year, the firm earned $3.92 earnings per share.

A number of other research analysts have also recently commented on IBM. JPMorgan Chase & Co. reduced their target price on shares of International Business Machines from $317.00 to $283.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 18th. BMO Capital Markets lowered their price target on shares of International Business Machines from $350.00 to $290.00 and set a "market perform" rating for the company in a report on Thursday, March 19th. Jefferies Financial Group reaffirmed a "buy" rating on shares of International Business Machines in a research note on Monday, February 23rd. Bank of America upped their price objective on shares of International Business Machines from $315.00 to $335.00 and gave the company a "buy" rating in a research report on Tuesday, January 13th. Finally, Argus set a $360.00 target price on International Business Machines in a research note on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, International Business Machines currently has an average rating of "Moderate Buy" and a consensus target price of $314.60.

International Business Machines Stock Up 0.3%

NYSE IBM opened at $241.23 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. International Business Machines has a fifty-two week low of $214.50 and a fifty-two week high of $324.90. The business has a 50 day moving average price of $267.99 and a two-hundred day moving average price of $284.73. The stock has a market cap of $226.28 billion, a PE ratio of 21.63, a P/E/G ratio of 2.41 and a beta of 0.73.

Hedge Funds Weigh In On International Business Machines

A number of hedge funds have recently bought and sold shares of the company. Basepoint Wealth LLC bought a new position in International Business Machines during the 4th quarter worth approximately $25,000. Family CFO Inc acquired a new position in shares of International Business Machines in the 4th quarter worth approximately $25,000. Joseph Group Capital Management bought a new stake in shares of International Business Machines in the 4th quarter valued at approximately $28,000. Cornerstone Financial Management LLC acquired a new stake in shares of International Business Machines during the 4th quarter valued at approximately $28,000. Finally, Mountain Hill Investment Partners Corp. acquired a new stake in shares of International Business Machines during the 3rd quarter valued at approximately $28,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at International Business Machines

In related news, Director Michael Miebach acquired 434 shares of the firm's stock in a transaction on Wednesday, February 25th. The stock was bought 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 in the company, valued at approximately $101,265.22. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director David N. Farr bought 1,000 shares of the company's stock in a transaction dated Friday, January 30th. The stock was bought at an average cost of $304.00 per share, with a total value of $304,000.00. Following the transaction, 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 position. The SEC filing for this purchase provides additional information. Insiders purchased 1,484 shares of company stock worth $417,157 over the last ninety days. 0.27% of the stock is currently owned by corporate insiders.

International Business Machines Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 10th were given a dividend of $1.68 per share. The ex-dividend date of this dividend was Tuesday, February 10th. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.8%. International Business Machines's dividend payout ratio (DPR) is presently 60.27%.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM led an open-source push for AI infrastructure by contributing the llm-d project to the Cloud Native Computing Foundation — a move that can deepen IBM’s footprint in enterprise AI stacks, attract contributors/partners, and reduce friction for customers adopting watsonx and related tools. IBM Pushes Open-Source AI Infrastructure with New llm-d Project
• Positive Sentiment: IBM expanded watsonx Orchestrate’s capabilities by partnering with ElevenLabs to add premium TTS/STT — enhances agentic AI use-cases for enterprises (multilingual voice, richer UX), strengthening product differentiation. Enterprise AI Finds its Voice: ElevenLabs and IBM Bring Premium Voice Capabilities to Agentic AI
• Positive Sentiment: BofA reiterated a Buy and $340 price target based on IBM’s agentic AI expansion — analyst backing can support investor confidence and buying interest in the near term. BofA Reaffirms Buy on IBM Stock Amid Agentic AI Expansion
• Positive Sentiment: CEO Arvind Krishna said the regulatory environment is friendlier for M&A — implies IBM can more quickly execute strategic tuck-ins to accelerate AI/cloud capabilities and revenue growth. IBM CEO: Regulatory environment much friendlier for M&A deals now
• Positive Sentiment: Cloudera named IBM among its 2026 Global Partner Award winners — another signal of channel strength and ecosystem validation for IBM’s data/AI offerings. Cloudera Announces 2026 Global Partner Awards Winners at IMPACT26
• Positive Sentiment: High-visibility deployments — IBM’s watsonx features at the Masters (Vault Search, Hole Insights) showcase its Granite SLMs and agentic tools to large audiences, useful for marketing and customer proof points. Masters AI Experience Launch Could Be A Game Changer For International Business Machines (IBM)
• Positive Sentiment: Consensus brokerage coverage sits around a "Moderate Buy," supporting broader analyst sentiment that IBM’s AI strategy can drive earnings — a tailwind for investor sentiment. International Business Machines Corporation NYSE: IBM Receives Consensus Rating of "Moderate Buy" from Brokerages
• Neutral Sentiment: Morgan Stanley’s note on Kyndryl highlights evolving partner dynamics with IBM — worth watching for service/partner revenue implications but not a direct near-term hit to IBM’s core AI story. Kyndryl: Limited Near-Term Upside Amid Uncertain Growth Outlook and Evolving IBM Partnership
• Neutral Sentiment: Industry coverage lists IBM among leading integration/iPaaS solutions — supportive for long-term positioning but not a catalyst by itself. Top Integration Tools in 2026: iPaaS, MuleSoft & IBM Solutions
• Negative Sentiment: Broader tech selling is exerting pressure on IBM and peers (Dow saw tech weakness), and IBM remains below its 50- and 200-day moving averages — technical/residual market risk could cap near-term upside. Dow Wavers. It's Getting Hit by Tech Now, Too.

About International Business Machines

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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