International Business Machines (NYSE:IBM) Updates Q2 2026 Earnings Guidance

Key Points

• IBM lowered its Q2 2026 outlook, guiding for EPS of $2.93 and revenue of $17.2 billion, both below Wall Street expectations of $3.02 EPS and $17.9 billion in revenue.
• The company’s most recent quarterly results were stronger than expected, with Q1 EPS of $1.91 and revenue of $15.92 billion, both beating analysts’ estimates.
• Analyst sentiment remains mostly positive, with Morgan Stanley upgrading IBM to overweight and several firms lifting price targets, leaving the stock with a consensus “Moderate Buy” rating.

International Business Machines (NYSE:IBM - Get Free Report) updated its second quarter 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 2.930-2.930 for the period, compared to the consensus EPS estimate of 3.020. The company issued revenue guidance of $17.2 billion-$17.2 billion, compared to the consensus revenue estimate of $17.9 billion.

Analyst Ratings Changes

IBM has been the subject of several analyst reports. Morgan Stanley upgraded International Business Machines from an "equal weight" rating to an "overweight" rating in a report on Tuesday, June 23rd. BMO Capital Markets dropped their target price on shares of International Business Machines from $290.00 to $270.00 and set a "market perform" rating on the stock in a report on Thursday, April 23rd. Bank of America upped their price target on shares of International Business Machines from $315.00 to $330.00 and gave the company a "buy" rating in a report on Monday, July 6th. Citigroup boosted their price objective on International Business Machines from $285.00 to $375.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Finally, Wall Street Zen raised International Business Machines from a "sell" rating to a "hold" rating in a report on Sunday, June 21st. Sixteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $306.28.

International Business Machines Stock Performance

International Business Machines stock opened at $290.46 on Tuesday. The firm has a market capitalization of $273.00 billion, a P/E ratio of 25.68, a P/E/G ratio of 2.78 and a beta of 0.68. The stock has a fifty day moving average price of $264.95 and a two-hundred day moving average price of $265.82. International Business Machines has a 52-week low of $212.34 and a 52-week high of $332.46. 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 (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.81 by $0.10. The business had revenue of $15.92 billion during the quarter, compared to analysts' expectations of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The firm's revenue for the quarter was up 9.5% compared to the same quarter last year. During the same period in the previous year, the business posted $1.60 earnings per share. As a group, analysts anticipate that International Business Machines will post 12.45 EPS for the current fiscal year.

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were paid a $1.69 dividend. This is a boost from International Business Machines's previous quarterly dividend of $1.68. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 annualized dividend and a dividend yield of 2.3%. International Business Machines's payout ratio is 59.77%.

More International Business Machines News

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

• Positive Sentiment: IBM released Arvind Krishna’s letter to investors alongside selected preliminary second-quarter 2026 financial results, giving the market an early look at performance ahead of the full earnings report. Arvind Krishna's Letter to IBM Investors
• Positive Sentiment: Several articles highlighted IBM as attractively valued, with Jim Cramer calling the stock inexpensive and praising CEO Arvind Krishna’s execution, which may reinforce investor confidence. Jim Cramer Says Buy IBM Right Now
• Positive Sentiment: Coverage around IBM’s AI and quantum initiatives, including updates to its Bob AI platform and attention on quantum tech at a Capitol Hill showcase, suggests the market is watching for long-term growth catalysts. IBM Just Unveiled Major Updates to Its Bob AI Platform
• Positive Sentiment: IBM was also featured in commentary about dividend growth and total-return potential, which can appeal to income-focused investors during volatile markets. 3 Dividend Stocks with Growth on Tap for the Second Half
• Neutral Sentiment: Some articles were more mixed, with one comparison piece saying HubSpot has a stronger AI growth profile and a lower valuation than IBM, which could temper enthusiasm somewhat. HubSpot vs. IBM
• Negative Sentiment: One report noted IBM shares had been down recently, and another asked whether IBM can stay steady through an “AI reset,” suggesting some lingering skepticism about the pace of the company’s re-rating. International Business Machines Shares Down 2.5% - What's Next?

Institutional Trading of International Business Machines

Several institutional investors and hedge funds have recently made changes to their positions in IBM. Brighton Jones LLC raised its position in shares of 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 acquiring an additional 2,323 shares during the period. Sivia Capital Partners LLC increased its stake in International Business Machines by 10.6% in the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company's stock valued at $571,000 after purchasing an additional 186 shares in the last quarter. Sykon Capital LLC acquired a new stake in International Business Machines in the fourth quarter worth $207,000. SBE LLC DBA Cedar Cove Wealth Partners bought a new position in shares of International Business Machines during the fourth quarter worth $207,000. Finally, Barings LLC acquired a new position in shares of International Business Machines in the 4th quarter valued at $203,000. Institutional investors own 58.96% of the company's stock.

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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