What is Erste Group Bank's Estimate for IBM FY2026 Earnings?

Key Points

• Erste Group Bank slightly lowered its FY2026 EPS estimate for IBM to $12.39 from $12.42, which is still above the current consensus estimate of $12.28.
• IBM’s stock was trading around $212.54, far below its 50-day and 200-day moving averages near $263, and the shares have also fallen well off their 12-month high of $332.46.
• Despite the recent weakness, Wall Street remains cautiously positive overall: IBM has a Moderate Buy consensus rating, and the company recently raised its quarterly dividend to $1.69 per share.

International Business Machines Corporation (NYSE:IBM - Free Report) - Research analysts at Erste Group Bank cut their FY2026 earnings per share estimates for International Business Machines in a research report issued to clients and investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now expects that the technology company will earn $12.39 per share for the year, down from their prior forecast of $12.42. The consensus estimate for International Business Machines' current full-year earnings is $12.28 per share.

A number of other research analysts have also recently issued reports on IBM. Barclays began coverage on shares of International Business Machines in a report on Monday, June 1st. They set an "overweight" rating and a $350.00 price objective for the company. DZ Bank upgraded shares of International Business Machines from a "hold" rating to a "buy" rating and set a $295.00 target price on the stock in a report on Friday, April 24th. Jefferies Financial Group began coverage on shares of International Business Machines in a research report on Tuesday, June 23rd. They issued a "buy" rating on the stock. Needham & Company LLC started coverage on International Business Machines in a report on Wednesday, June 3rd. They set a "buy" rating for the company. Finally, Citigroup lowered their price objective on International Business Machines from $375.00 to $255.00 and set a "buy" rating for the company in a research note on Friday. Fifteen research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $292.89.

International Business Machines Stock Performance

Shares of IBM stock opened at $212.54 on Monday. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The firm has a fifty day simple moving average of $263.84 and a two-hundred day simple moving average of $263.28. International Business Machines has a 12 month low of $204.44 and a 12 month high of $332.46. The firm has a market capitalization of $199.76 billion, a PE ratio of 18.79, a price-to-earnings-growth ratio of 2.28 and a beta of 0.68.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The company had revenue of $15.92 billion for the quarter, compared to analysts' expectations of $15.60 billion. During the same period last year, the business earned $1.60 EPS. International Business Machines's quarterly revenue was up 9.5% compared to the same quarter last year.

Hedge Funds Weigh In On International Business Machines

Several institutional investors have recently modified their holdings of IBM. Basepoint Wealth LLC bought a new stake in shares of International Business Machines during the 4th quarter worth $25,000. Family CFO Inc bought a new position in International Business Machines during the fourth quarter valued at about $25,000. Joseph Group Capital Management purchased a new stake in International Business Machines during the fourth quarter worth about $28,000. Cornerstone Financial Management LLC bought a new stake in International Business Machines in the fourth quarter worth about $28,000. Finally, SWAN Capital LLC bought a new stake in International Business Machines in the third quarter worth about $28,000. 58.96% of the stock is owned by institutional investors.

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 represents a $6.76 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date was Friday, May 8th. This is a boost from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's dividend payout ratio (DPR) is presently 59.77%.

Key International Business Machines News

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

• Positive Sentiment: IBM launched new Power server products aimed at automation, app modernization, and local AI inferencing, which could support its enterprise AI push over time.
• Positive Sentiment: JPMorgan kept an overweight rating on IBM even after cutting its price target to $250, indicating Wall Street still sees upside from current levels.
• Positive Sentiment: Some analysts say the stock’s sharp decline may have pushed it into oversold territory, which could attract bargain hunters if sentiment stabilizes.
• Neutral Sentiment: IBM heads into its July 22 earnings report with investors focused on whether the company can validate its AI and cloud momentum after the warning.
• Neutral Sentiment: Analysts at Zacks and others are debating whether the selloff is an opportunity or a sign to wait, reflecting uncertainty rather than a clear fundamental shift.
• Negative Sentiment: IBM’s preliminary Q2 miss and weak near-term outlook are the main reasons the stock is falling, as they suggest slower growth and margin pressure.
• Negative Sentiment: Multiple law firms have announced securities-fraud investigations after the plunge, which can keep negative headlines around the stock.
• Negative Sentiment: Analyst sentiment is turning more cautious, with some estimate reductions and technical warnings reinforcing bearish momentum.

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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