International Business Machines Corporation (NYSE:IBM) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• IBM has a consensus analyst rating of “Moderate Buy.” Among 21 analysts covering the stock, 12 rate it a buy, 1 a strong buy, and 8 a hold, with an average 12-month price target of about $299.17.
• The company’s latest earnings beat expectations. IBM reported $1.91 EPS and $15.92 billion in revenue for the quarter, topping analyst estimates, while revenue rose 9.5% year over year.
• IBM recently increased its dividend and has drawn bullish attention around quantum computing. The quarterly dividend was raised to $1.69 per share, and recent coverage highlighted IBM’s $10 billion quantum-computing investment plan as a potential long-term growth driver.

Shares of International Business Machines Corporation (NYSE:IBM - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the twenty-one analysts that are covering the firm, Marketbeat Ratings reports. Eight investment analysts have rated the stock with a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $299.1667.

A number of brokerages have commented on IBM. Erste Group Bank lowered International Business Machines from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. Oppenheimer decreased their price objective on International Business Machines from $380.00 to $320.00 and set an "outperform" rating for the company in a report on Thursday, April 16th. Stifel Nicolaus set a $290.00 price objective on International Business Machines in a report on Friday, May 22nd. DZ Bank raised International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 price objective for the company in a report on Friday, April 24th. Finally, Weiss Ratings lowered International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, May 21st.

International Business Machines Stock Up 2.9%

IBM stock opened at $329.72 on Wednesday. The stock's 50 day simple moving average is $241.55 and its 200 day simple moving average is $270.75. International Business Machines has a fifty-two week low of $212.34 and a fifty-two week high of $332.46. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The company has a market cap of $309.90 billion, a P/E ratio of 29.15, a price-to-earnings-growth ratio of 3.32 and a beta of 0.67.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. The firm had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company's revenue for the quarter was up 9.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.60 EPS. On average, research analysts expect that International Business Machines will post 12.4 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The business also recently disclosed 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. The ex-dividend date of this dividend is Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 2.1%. This is an increase from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio is presently 59.77%.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM’s $10 billion quantum-computing investment plan boosted investor enthusiasm by signaling a long-term push to lead in fault-tolerant quantum systems. IBM Commits More Than $10 Billion to Quantum Computing
• Positive Sentiment: Barclays initiated coverage with an Overweight rating and a $350 price target, while Wedbush also raised its target, suggesting Wall Street sees more upside despite the run-up. Wedbush lifts IBM price target as AI transformation fears give way to execution confidence
• Positive Sentiment: Coverage highlighting IBM as a top quantum-computing beneficiary in 2026 added to momentum, with investors viewing IBM as a potential leader in the sector. Why IBM Could Be One of the Biggest Quantum Computing Winners in 2026
• Neutral Sentiment: Recent articles also pointed to IBM’s stock being expensive after the rally, with some analysts flagging overvaluation risk as expectations rose quickly. IBM Stock Surges on Trump Video, $10B Quantum Bet: Analysts Flag Overvaluation Risk
• Neutral Sentiment: IBM also benefited from broader AI/software optimism after Nvidia-related commentary eased fears that AI would displace enterprise software vendors, supporting the stock’s move. Arm, IBM and Hewlett Packard soar as Nvidia chip 'reinvention' extends software rally

Institutional Trading of International Business Machines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Blue Edge Capital LLC grew its holdings in shares of International Business Machines by 22.9% in the first quarter. Blue Edge Capital LLC now owns 8,316 shares of the technology company's stock valued at $2,016,000 after acquiring an additional 1,551 shares in the last quarter. Caerus Investment Advisors LLC grew its holdings in shares of International Business Machines by 35.7% in the first quarter. Caerus Investment Advisors LLC now owns 1,418 shares of the technology company's stock valued at $344,000 after acquiring an additional 373 shares in the last quarter. First Nebraska Trust Co bought a new position in shares of International Business Machines in the first quarter valued at approximately $3,422,000. Foguth Wealth Management LLC. grew its holdings in shares of International Business Machines by 10.0% in the first quarter. Foguth Wealth Management LLC. now owns 2,603 shares of the technology company's stock valued at $631,000 after acquiring an additional 236 shares in the last quarter. Finally, Integrated Investment Consultants LLC grew its holdings in shares of International Business Machines by 0.4% in the first quarter. Integrated Investment Consultants LLC now owns 12,296 shares of the technology company's stock valued at $2,980,000 after acquiring an additional 50 shares in the last quarter. 58.96% of the stock is owned by institutional investors.

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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