International Business Machines (NYSE:IBM) Earns Outperform Rating from Wedbush

Key Points

• Wedbush reiterated an Outperform rating on IBM with a $320 price target, implying roughly a 40.9% upside from the current price.
• IBM beat Q1 expectations — EPS $1.91 vs. $1.81 and revenue $15.92B vs. $15.60B — with revenue up 9.5% year‑over‑year and healthy margins (net margin 15.61%, ROE 37.23%).
• Company momentum is driven by a new enterprise‑AI and hybrid‑cloud roadmap showcased at Think 2026 (watsonx Orchestrate, IBM Concert, Sovereign Core), major partnerships (e.g., Saudi Aramco) and quantum milestones that analysts point to as growth catalysts.

International Business Machines (NYSE:IBM - Get Free Report)'s stock had its "outperform" rating reiterated by equities research analysts at Wedbush in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $320.00 price target on the technology company's stock. Wedbush's price target would indicate a potential upside of 40.89% from the stock's current price.

IBM has been the topic of a number of other research reports. Dbs Bank upgraded International Business Machines from a "hold" rating to a "moderate buy" rating in a research note on Monday, January 19th. HSBC upgraded International Business Machines from a "reduce" rating to a "hold" rating and upped their price objective for the stock from $218.00 to $231.00 in a research report on Tuesday, April 28th. UBS Group raised shares of International Business Machines from a "sell" rating to a "neutral" rating and set a $236.00 target price for the company in a report on Wednesday, February 25th. Citigroup assumed 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 on the stock. Finally, JPMorgan Chase & Co. dropped their price target 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. 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's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $296.18.

International Business Machines Stock Down 0.8%

NYSE:IBM opened at $227.12 on Wednesday. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The company's fifty day moving average price is $242.95 and its 200-day moving average price is $278.53. International Business Machines has a 1-year low of $220.72 and a 1-year high of $324.90. The firm has a market capitalization of $213.47 billion, a P/E ratio of 20.13, a PEG ratio of 2.38 and a beta of 0.58.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly 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. The company had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The firm's revenue was up 9.5% on a year-over-year basis. During the same period in the prior year, the company earned $1.60 earnings per share. As a group, equities research analysts anticipate that International Business Machines will post 12.38 EPS for the current year.

Insider Activity at International Business Machines

In related news, Director Michael Miebach purchased 434 shares of the company's stock in a transaction dated Wednesday, February 25th. The stock was acquired at an average cost of $233.33 per share, for a total transaction of $101,265.22. Following the completion of the transaction, the director directly owned 434 shares of the company's stock, valued at approximately $101,265.22. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.27% of the stock is owned by insiders.

Institutional Trading of International Business Machines

Several large investors have recently added to or reduced their stakes in IBM. Family CFO Inc acquired a new stake in shares of International Business Machines during the 4th quarter worth approximately $25,000. Basepoint Wealth LLC purchased a new position in International Business Machines in the fourth quarter worth approximately $25,000. Portus Wealth Advisors LLC acquired a new stake in International Business Machines during the first quarter worth $26,000. Mountain Hill Investment Partners Corp. acquired a new stake in International Business Machines during the third quarter worth $28,000. Finally, Joseph Group Capital Management purchased a new stake in International Business Machines in the fourth quarter valued at $28,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines News Summary

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

• Positive Sentiment: IBM rolled out a broad enterprise‑AI and hybrid cloud roadmap at Think 2026 — including next‑gen watsonx Orchestrate, IBM Concert, real‑time data integration and the general availability of IBM Sovereign Core — positioning IBM to capture demand from large, regulated customers for governed AI deployments. Think 2026: IBM Delivers the Blueprint for the AI Operating Model
• Positive Sentiment: IBM Consulting expanded IBM Enterprise Advantage and internal IBM Consulting Advantage to accelerate hybrid‑AI deployments for enterprises (customers cited include Pearson and Providence), which should help drive higher‑margin services revenue if adoption scales. IBM Consulting Expands AI Capabilities to Accelerate Enterprise Transformation
• Positive Sentiment: IBM announced an intended industrial AI collaboration with Saudi Aramco to explore agentic AI, automation and materials science — a large addressable opportunity that underscores IBM’s push into industrial AI partnerships and services. IBM and Aramco Explore Collaboration
• Positive Sentiment: IBM and partners (Cleveland Clinic, RIKEN) used IBM quantum hardware to simulate the largest biologically meaningful molecule to date — a technical milestone that supports IBM’s leadership narrative in quantum and attracts investor interest in future quantum revenues. Cleveland Clinic, RIKEN, and IBM Model a 12,635‑Atom Protein
• Positive Sentiment: HSBC upgraded IBM on a higher valuation for its quantum business, reflecting bullish analyst views on long‑term optionality from quantum tech. HSBC Upgrades IBM on Quantum Business Valuation
• Neutral Sentiment: LogicMonitor and Red Hat integrations with IBM watsonx aim to extend autonomous IT offerings; strategic but incremental partner news that could aid product diffusion. LogicMonitor Collaborates with IBM and Red Hat
• Neutral Sentiment: Market reports and training programs mentioning IBM (smart grid cybersecurity, certification courses) keep brand visibility high but are unlikely to move near‑term fundamentals materially. Global Smart Grid Cybersecurity Market Report
• Negative Sentiment: J.P. Morgan reiterated a Hold on IBM, citing upside from AI/quantum but ongoing execution risks — a conservative take that can weigh on sentiment until execution and revenue cadence prove out. Hold Rating Reiterated on IBM
• Negative Sentiment: CEO Arvind Krishna warned about the risk of heavy‑handed AI regulation crimping U.S. competitiveness — investor concern: potential regulatory intervention could slow enterprise AI projects or increase compliance costs. IBM CEO Warns on AI Regulation

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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