Research Analysts Offer Predictions for IBM Q3 Earnings

Key Points

• Zacks Research has lowered its Q3 2025 earnings expectations for IBM to $2.42 per share, down from a prior estimate of $2.44, with a full-year consensus estimate of $10.78 per share.
• IBM reported earnings of $2.80 per share for the last quarter, exceeding expectations and reflecting a 7.7% increase in revenue year-over-year compared to the previous quarter.
• The stock has a consensus rating of "Moderate Buy" with an average price target of $268.75, influenced by mixed ratings from various research analysts.

International Business Machines Corporation (NYSE:IBM - Free Report) - Zacks Research decreased their Q3 2025 earnings estimates for shares of International Business Machines in a research report issued to clients and investors on Wednesday, August 13th. Zacks Research analyst R. Department now expects that the technology company will earn $2.42 per share for the quarter, down from their prior forecast of $2.44. The consensus estimate for International Business Machines' current full-year earnings is $10.78 per share. Zacks Research also issued estimates for International Business Machines' Q4 2025 earnings at $4.24 EPS, FY2025 earnings at $11.07 EPS, Q1 2026 earnings at $1.66 EPS, Q2 2026 earnings at $2.96 EPS, Q3 2026 earnings at $2.82 EPS, Q4 2026 earnings at $4.29 EPS, FY2026 earnings at $11.73 EPS, Q2 2027 earnings at $3.47 EPS and FY2027 earnings at $12.64 EPS.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 EPS for the quarter, beating analysts' consensus estimates of $2.65 by $0.15. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The firm had revenue of $16.98 billion for the quarter, compared to the consensus estimate of $16.58 billion. During the same period in the prior year, the firm posted $2.43 EPS. The firm's revenue was up 7.7% compared to the same quarter last year.

A number of other research analysts also recently commented on IBM. Melius Research upgraded shares of International Business Machines to a "strong-buy" rating in a research note on Monday, July 7th. Morgan Stanley reduced their price target on shares of International Business Machines from $237.00 to $233.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 24th. Stifel Nicolaus raised their price target on shares of International Business Machines from $290.00 to $310.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. JPMorgan Chase & Co. raised their price target on shares of International Business Machines from $244.00 to $290.00 and gave the stock a "neutral" rating in a research report on Thursday, July 24th. Finally, Erste Group Bank downgraded shares of International Business Machines from a "buy" rating to a "hold" rating in a research report on Thursday. One research analyst has rated the stock with a sell rating, nine have issued a hold rating, nine have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, International Business Machines has a consensus rating of "Moderate Buy" and a consensus target price of $268.75.

International Business Machines Trading Up 2.3%

NYSE IBM opened at $240.24 on Thursday. International Business Machines has a 12 month low of $190.73 and a 12 month high of $296.16. The company has a debt-to-equity ratio of 2.00, a current ratio of 0.91 and a quick ratio of 0.87. The company has a market capitalization of $223.28 billion, a price-to-earnings ratio of 39.00, a price-to-earnings-growth ratio of 3.62 and a beta of 0.69. The company's fifty day moving average price is $274.46 and its two-hundred day moving average price is $258.27.

Institutional Trading of International Business Machines

Hedge funds have recently bought and sold shares of the company. MinichMacGregor Wealth Management LLC bought a new stake in shares of International Business Machines during the 1st quarter worth about $396,000. Left Brain Wealth Management LLC raised its position in shares of International Business Machines by 1,547.8% during the 1st quarter. Left Brain Wealth Management LLC now owns 17,664 shares of the technology company's stock worth $4,392,000 after buying an additional 16,592 shares in the last quarter. Alpha Cubed Investments LLC raised its position in shares of International Business Machines by 47.0% during the 1st quarter. Alpha Cubed Investments LLC now owns 7,507 shares of the technology company's stock worth $1,867,000 after buying an additional 2,399 shares in the last quarter. Wedbush Securities Inc. raised its position in shares of International Business Machines by 5.6% during the 1st quarter. Wedbush Securities Inc. now owns 62,067 shares of the technology company's stock worth $15,434,000 after buying an additional 3,276 shares in the last quarter. Finally, Nationale Nederlanden Powszechne Towarzystwo Emerytalne S.A. bought a new stake in shares of International Business Machines during the 1st quarter worth about $4,608,000. 58.96% of the stock is currently owned by institutional investors.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

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