Wedbush Issues Pessimistic Outlook for IBM Earnings

Key Points

• Wedbush has lowered its Q3 2025 earnings per share estimate for IBM to $2.44, slightly down from $2.45, while maintaining an "Outperform" rating with a target price of $325.00.
• IBM reported earnings of $2.80 per share for the last quarter, exceeding the consensus estimate of $2.65, with revenues of $16.98 billion, surpassing expectations of $16.58 billion.
• The company's recently increased dividend is now $1.68 per share, reflecting an annualized dividend yield of 2.59%.

International Business Machines Corporation (NYSE:IBM - Free Report) - Equities research analysts at Wedbush reduced their Q3 2025 earnings per share estimates for International Business Machines in a report issued on Thursday, July 24th. Wedbush analyst D. Ives now anticipates that the technology company will post earnings of $2.44 per share for the quarter, down from their prior estimate of $2.45. Wedbush has a "Outperform" rating and a $325.00 price objective on the stock. The consensus estimate for International Business Machines' current full-year earnings is $10.78 per share. Wedbush also issued estimates for International Business Machines' Q4 2025 earnings at $4.29 EPS, FY2025 earnings at $11.15 EPS, Q1 2026 earnings at $1.78 EPS, Q2 2026 earnings at $2.79 EPS, Q3 2026 earnings at $2.70 EPS, Q4 2026 earnings at $4.45 EPS and FY2026 earnings at $11.73 EPS.

A number of other research analysts have also issued reports on the company. UBS Group boosted their target price on International Business Machines from $195.00 to $200.00 and gave the company a "sell" rating in a report on Thursday. JPMorgan Chase & Co. boosted their target price on International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a report on Thursday. KGI Securities set a $242.00 target price on International Business Machines and gave the company a "hold" rating in a report on Thursday, April 24th. Citigroup reissued an "outperform" rating on shares of International Business Machines in a report on Saturday, May 10th. Finally, Melius Research raised International Business Machines to a "strong-buy" rating in a report on Monday, July 7th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have given a buy rating and two have given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $268.75.

International Business Machines Stock Performance

Shares of NYSE:IBM traded up $2.53 during trading on Friday, reaching $262.25. The company had a trading volume of 2,388,682 shares, compared to its average volume of 4,622,051. The firm has a market capitalization of $243.73 billion, a price-to-earnings ratio of 42.60, a price-to-earnings-growth ratio of 4.01 and a beta of 0.69. 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 stock's fifty day moving average price is $277.69 and its 200 day moving average price is $256.27. International Business Machines has a fifty-two week low of $181.81 and a fifty-two week high of $296.16.

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

International Business Machines Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 10th. Shareholders of record on Friday, May 9th were paid a dividend of $1.68 per share. This is a positive change from International Business Machines's previous quarterly dividend of $1.67. This represents a $6.72 annualized dividend and a yield of 2.56%. International Business Machines's dividend payout ratio is currently 109.09%.

Institutional Investors Weigh In On International Business Machines

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Family CFO Inc acquired a new stake in shares of International Business Machines in the second quarter valued at about $25,000. Christopher J. Hasenberg Inc acquired a new stake in International Business Machines during the 1st quarter valued at approximately $27,000. SSA Swiss Advisors AG acquired a new stake in International Business Machines during the 1st quarter valued at approximately $28,000. Dagco Inc. acquired a new stake in International Business Machines during the 1st quarter valued at approximately $31,000. Finally, Silicon Valley Capital Partners grew its stake in International Business Machines by 322.6% during the 1st quarter. Silicon Valley Capital Partners now owns 131 shares of the technology company's stock valued at $32,000 after purchasing an additional 100 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

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.